Personal Choice pays distributions
ThePersonal Choice Master Fund will pay a distribution to advisers only 12 months after it commenced operations.
The quarterly distributions will begin at 0.1 per cent of funds under advice, though Personal Choice Management, the master trust operator, aims to grow this distribution to 0.3 per cent by the end of 2003.
Personal Choice general manager John Lipkiewicz says the success has been a result of its ability to keep administration and marketing costs to a minimum.
Lipkiewicz says the low cost focus has been a major factor in attracting inflows of $100 million since November 2001, allowing the distribution payments to advisers.
The master trust is using the Association of Independently Owned Financial Planners (AIOFP) as a distribution channel, and aims to grow further through referrals from its members.
Lipkiewicz says that the use of AIOFP gives Personal Choice an advantage in terms of speed to market and cost.
Personal Choice also underwent changes in November, when an investor-directed portfolio service (IDPS) was launched and the superannuation fund was enhanced by new model portfolios, direct shares and a new menu of funds.
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