Select adds index solutions

Select Wealth which has until now offered advisers a range of actively managed portfolios has now launched index enhanced portfolios for those who prefer an index-based investment approach.

Head of Select Wealth Debbie Tuddenham says it was a big decision and came about because of demand from advisers.

“To date we haven’t really been able to work with those advisers that prefer to build index-tracking portfolios,” she says. “With this new range, we can now offer advisers a range of index-tracking model portfolios, as well as the convenience of multiple custodial platforms and what we believe to be industry-leading service levels.”

She says it is also a growth opportunity which fits with the aims of the parent company’s new majority shareholder.

Earlier this month Australian-based Shaw and Partners took a 75% stake in ISG which is the parent company of Devon Funds, JMI Wealth, Select Wealth, Clarity Funds and TAHITO.
Tuddenham says there are conservative, balanced and growth portfolios and they follow the same strategic asset allocation as its core Selected portfolios.

The new portfolios utilises securities that aim to enhance index returns through their investment style, Tuddenham says. “They exclude tactical overlays, aligning more closely with a passive investment philosophy.

Over the costs are lower with fund management fees of between 26 and 30 basis points and it has lowered its administration fee from 55 basis points to 50 basis points.

The funds don’t require rebalancing every quarter as they are following an index.

The index portfolios use funds from managers including Kernel, Simplicity, Dimensional, Betashares and Schroders.

The new offering is under a DIMs and are available on the Apex and FNZ platforms.

Select Wealth Management now manages more than $1 billion on behalf of more than 200 Financial Advice Providers.

“We continue to evolve our offerings to meet the diverse needs of advisers and their clients,” Tuddenham says.

As well as offering an improved range of model portfolios, Select Wealth has extended its range of available investments. Financial advisers who want to create a bespoke portfolio for their clients have a range of options including a selection of managed funds supported by underlying research, a range of index ETFs, direct NZX and ASX stocks and a variety of direct bonds and fixed interest options.