Asgardhas unveiled further details of its mini-master trust, Elements, but says it will not differentiate the product on fees alone due to fierce competition in the market.
Instead theSealcorpowned group, which revealed the platform last week, will aim to set the platform apart by claims it will aid advisers in managing large numbers of small client account balances more efficiently.
Elements, available from April, will offer a flat fee scale and will vary from its parent Asgard, which offers a sliding fee scale dependent on the size of the account and the investment options chosen.
According to Sealcorp associate director for institutional business services Wes Gillett, Elements has a fee range of 160 to 220 basis points, depending on the investment options chosen. This figure includes a built-in 60 basis point trail, which compares to Asgard fee levels of 210 to 270 basis points with the same 60 basis point trail for an account size of $300,000.
On the question of whether Elements will cannibalise funds which otherwise may flow into Asgard, Gillett says the spin-off is aimed at clients with lower balances (below $150,000) and has been developed “to aid planners in servicing large numbers of small client account balances”.
“Elements probably isn’t going to be appropriate for clients with over $300,000 who are looking for a fully diversified portfolio,” he says.
According to Gillett, the main difference will be the width of the menu, which consists of 30 discretionary funds and 10 models, and some functionality options available on the broader Asgard platform.
Comparable products in the market includeColonial First State’sFirstChoice master trust, which has a fee range of 110 to 250 basis points and offers a 60 basis point trail.
As for providers of wraps, BT Wrap Essentials has a fee range of 165 to 235 basis points, including a 60 basis point trail, while Macquarie, through its Accumulator platform, has a fee range between 88 and 225 basis points, with no trail.
