Platinum and Macquarie resolve wrap differences
Platinum Asset Managementhas reversed a decision to pull its funds from theMacquarie Wrapproduct after the latter introduced a revised fee schedule offering rebates to investors using funds through the platform.
On Monday of last week Macquarie wrote to advisers using the wrap product notifying them of the withdrawal of the funds and stating that no new applications would be accepted after September 4.
In the communication with advisers Macquarie said it had introduced a new fee structure in which managers could continue to pay a fund manager fee of $5500 and a $3300 administration recovery fee per fund.
Alternately managers could access a rebate structure where amounts received over the administration recovery fee would be allocated by Macquarie Wrap back to investors in the full Wrap Manager products.
Macquarie also offers a low cost wrap platform called Accumulator and managers choosing the second option would receive a listing on its investment menu and reports covering the support of its funds at the adviser level.
Those managers choosing the existing option would remain on the full wrap investment menu and receive reports covering the support of its funds at the dealer level.
Macquarie Wrap Solutions head of product and marketing Matthew Rady says Macquarie would not discuss what pricing structure Platinum had agreed to but rather only that the manager had agreed to remain on the platform’s investment menu.
Since notifying advisers at the start of last week Rady says Macquarie had received a high level of comment from third party planners requesting further details of the changes and the ongoing inclusion of Platinum on the platform’s investment menu.
“We have been taking a lot of feedback from advisers as Platinum is a strong performer with good adviser support,” Rady says.
He also says that since the introduction of the new fee structure a number of other managers have queried the move “but none to the same extent as Platinum”.
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