Half the cost. Plus a revenue line that wasn't available before.
Where the client fee goes
Typical Platform
With us: ready-made models
With us: branded models
Administration
0.29% to 0.38%
Asset Management
0.60% to 1.12%
Model fee to your firm
not available
0.22%
0.22% to 0.33%
nil
0.22%
0.22% to 0.33%
set by your firm
Total client fee before advice fee
0.44% to 0.55%
0.89% to 1.5%
0.44% to 0.55% plus your model fee
Firms with their own licensed and resourced asset management team can perform some of these functions in-house, which changes what the asset management layer costs. We assess that capability case by case before the arrangement is available.
Ready-made with us v Typical Platform: On a $1 million client, that is a difference of roughly $4,500 to $9,500 a year. Across $50 million of client money, it is between $225,000 and $475,000 a year.
None of that is automatically yours. It is the amount that stops going to third parties, and where it goes next is your decision.
What the choice actually is
Reduce what your client pays. Charge a model fee for the investment management your firm is involved in. Or do both.
On a platform that choice does not exist. This is the whole point of the arrangement.
Ready-made model portfolios
Portfolios you appoint from our approved panel rather than construct. Someone else is the Model Portfolio Manager and carries that work.
You get the ownership structure, the reporting and the clean exit, without taking on model governance. There is no model fee to you, because there is no model work.
Most firms start here.
Branded model portfolios
Your firm becomes the Model Portfolio Manager. You own the portfolios, their objectives, timeframes and asset allocation ranges, and the models carry your name.
An independent asset consultant researches and recommends the asset allocation. Third party specialists run the individual asset class models within mandate. You are paid a model fee for the work, and because you decide what sits underneath, you decide what the asset management layer costs.
We hold the client's discretionary authority and chair the investment committee that ratifies every change. You own the models. We carry the obligation.