Matt Heine
Independent wrap provider Netwealth Investments has entered into a consulting agreement with Standard & Poor’s (S&P) for its Investor Rewards Program, which will launch on October 1 as an alternative to the traditional baby wrap.
In terms of the agreement, S&P has put in place a new consulting team comprising asset consultants Paul O’Connor and Jeff Mitchell, according to Netwealth director of distribution and marketing Matt Heine.
The S&P team will build five model portfolios for the Investor Rewards Program “based on an investment philosophy which is being developed at the moment between ourselves and S&P”, he said.
The five portfolios — enhanced income, balanced, growth, high growth and conservative — will be based on a “core-satellite” approach.
“We are looking to have 50 per cent of the investment options in the Netwealth multi-manager funds, which are managed by Russell, combined with seven to 10 satellite options.”
The models will be reported on a quarterly basis, which will provide investors with manager and market commentary as well as news of any changes to the portfolio, Heine said.
This information will be able to be used in adviser Statements of Advice for their clients, he said.
