Wealthtrac does not charge any up front implementation fee.
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Improved Investment Performance

If you use risk based model portfolios, you’ll know that changing a fund means preparing an ROA for every client, and although not mandatory, it’s best practice to seek client consent before implementing the change. This creates three costly problems:

  • Because of the time to receive client consent and implement the change, you end up with clients with the same risk profile in different portfolios.
  • Clients experience performance leakage because it takes too long to implement the change.
  • Administering ROAs is expensive and drains valuable staff time.

SMAs completely solve these problems, it has been shown that avoiding implementation leakage can improve clients’ investment performance by 3% – 6% p.a.

Rapid changes to protect Portfolios

You never have to worry about how many changes you need to make to a portfolio, particularly with the volatile markets we are experiencing now, where it may be beneficial to make multiple rapid changes to protect portfolios.

Lower Costs to Clients

  • We know that using wholesale funds under an SMA mandate generates around 30 bps in fee rebates from fund managers that go directly to your clients’ cash account.
  • There are costs of 10 – 20 bps to manage SMAs, but net costs to clients will reduce compared with model portfolios.

Practice Efficiency

  • Taking out the costs of continuous ROAs including following up outstanding client responses can save $50,000 – $100,000 p.a. in practice administration costs.

Increased Dealer Revenue

  • Many Dealers have developed model portfolios to reflect their own view on markets and portfolio themes. You can receive fees for this valuable input, by becoming a member of the Wealthtrac Investment Management Team for your SMAs.
  • Wealthtrac can build in an investment management fee of up to 10 bps for the Dealer, payable each month.