Strong outlook for Challenger platforms
The outlook for Challenger platforms will remain strong as net fund flows favour the non-aligned platforms, according to Powerwrap’s chief executive, Will Davidson.
The platform, which offered a range of alternative investments, has an average portfolio of around $1.4 million each, with more than 435,000 high net worth investors in Australia who were responsible for $1.72 trillion in investable assets.
Funds under administration (FUA) increased 22 per cent between FY17 and FY18 to $7.8 billion, as of the end of September quarter.
According to Davidson, headwinds from the Royal Commission’s scrutiny of the vertically integrated wealth management business model had the potential to drive growth of non-bank platform providers.
“Net funds flows are clearly favouring the challengers and this is likely to continue,” he added.
Davidson also said that the turnkey services were particularly attractive to advisers looking to set up more independent operations.
Recommended for you
The latest budget papers have outlined a $10 million provision for ASIC greenwashing enforcement activity as well as funds for a sustainable labelling regime to be partially met by industry levies.
Betashares has expanded its fixed income solutions with the launch of a new ETF offering exposure to subordinated bonds issued by the big four Australian banks.
The latest monthly Bank of America global fund manager survey has found investors are starting to shift cash into bonds as cash allocations reach a three-year low.
AUSIEX analysis has discovered the net traded value of Australian dollar fixed income ETFs more than doubled from January to April, reflecting growing investor demand.
