Asgard changes draw flak
Changes to parts of the Asgard master trust have drawn criticism from the financial planning community.
Changes to parts of the Asgard master trust have drawn criticism from the financial planning community.
About two months ago, Asgard replaced the blend of active managers with an Advance index fund under the model choice option in the group's corporate superannuation master trust.
Some advisers claim they were not consulted properly about the changes which could involve contacting all of their clients to notify them of changes or alter their fund allocation.
"I have found that discretion can be removed unexpectedly by the pow-ers that be with a lack of respect to those advisers who have made what Asgard is today," one adviser told Money Management.
Sealcorp managing director Ian Knox says Asgard did communicate all the changes in writing and in advance of implementation.
Lifespan Financial Planning proper authority holder Roy Todarello is concerned that his choice to use active fund managers for his clients may be undermined by the changes.
"It will expose the client to a different set of risk parameters that may not suit the client's expectations," he says.
"The most obvious is that a growth investor who seeks a higher risk-reward scenario may be disadvantaged by return limitations of passive index investments. The risks to that type of investor are clearly un-derperformance - they are not concerned with volatility."
However, Knox says the switch to index funds will smooth the active risk element and reduce management fees without disrupting the long-term strategic bench-marks for the entire portfolio.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
