GPS Wealth, an Australia-based dealer group, has implemented a new managed discretionary account (MDA) solution to cut investment fees for clients in half and doing away with expensive master trusts and wrap platforms.
With this new solution, new clients of GPS Wealth will be charged an average investment management fee of between 0.6% and 0.8% of assets under advice compared to 1.5% previously, according to Professional Planner.
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Additionally, the group is also planning to move 60% of existing funds under advice into a MDA structure over the next two years.
The new managed account solution will enable the firm to create a tailored direct portfolios based on clients’ individual needs and tax situation.
Grahame Evans, managing director GPS Wealth, said: "The MDA is only for new money at this stage but we’ll be seriously considering the service for existing clients as part of the review process. Our philosophy is to add value through asset allocation and by keeping fees down and preventing clients from making silly, emotional investment decisions."
Evans added that the MDA solution was created based on the group’s investment philosophy and mantra of "Exciting life, boring money".
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By GlobalDataGPS Wealth, founded by Greg Holman and Rob McGregor, currently has 32 practices and over 50 financial advisers across Queensland and New South Wales.
