With Bay Financial Partners you can access one of the major wrap platforms available in New Zealand - OneAnswer.
Under a wrap account, you retain beneficial ownership of the underlying assets. However, a custodian is used to hold investments on your behalf.
The custodian combines client holdings to gain access to wholesale funds on terms that are not usually available to individual investors.
On behalf of investors, the custodian tracks investments from around the world. Collects income and provides investors with up to date portfolio and taxation reporting, freeing up time for investors and their advisers to focus on the investment decisions.
To discuss the benefits of the OneAnswer wrap account please ring Andrew or Jonathan on 07 578 3863 or 0800 867 323.
Lower wholesale management fees
Through the custodian, investors have access to wholesale fund management fees. Wholesale fees can be less than 1% p.a. compared with retail investment management fees which can be 2.5% p.a. or more.
Access to a wider range of investments
A wrap account gives investors access to investments that would otherwise not be available. The custodian groups investors' funds to gain access to wholesale funds and other investment opportunities around the world that are not available to individual investors.
Online Access to your portflio
With either platform you have the option to access your portfolio online over the internet through a secure connection. You can login pretty much any time of the day or night and review your investments. There is no additional cost for this service.
Co-ordination of key information
The custodian records all distributions and interest transactions allowing for the production of detailed or summarised reports for investors.
Comprehensive Tax Reporting
Each year a comprehensive suite of reports are available to enable you or your accountant to prepare your tax returns.
New Zealand made
The platform is designed by New Zealanders to comply with current New Zealand legislation and for New Zealand investors who want access to a wide range of domestic and international investments.
No Hidden Costs
Each month the wrap platform charges your account a small monthly fee, which is based on the market value of your portfolio. Part of this fee goes to the custodian to pay for their services and part goes to us as your adviser.
You can choose whether to include our advise fee as a monthly charge or pay on "as required" basis. If you choose to pay us a set fee you have the option to elect to have all trails, rebates, commissions etc that otherwise would be paid to us as adviser, rebated back to you.
The most you would pay to use the OneAnswer platform through Bay Financial Partners with full advise service would be 1.35% of the market value of the portfolio. The fee percentage reduces in steps as your portfolio value increases. To use the platform as a custodial and reporting service with no advise the highest fee is 0.50%. Please see our disclosure statement for a full list of fees or call us on 07 578 3863.
The custodian and associated companies are independently audited to ensure everything relating to your investment is as it should be.
Easy to change your Adviser
As long as your new Adviser has an account with the wrap platform it is merely a case of you writing to the wrap and asking them to change your Adviser. There is generally no charge for this.
What is a Custodian?
A custodian is a legal entity (generally a company) that holds investments on behalf of investors.
What does the custodian do?
The custodian holds investments made through the wrap platform on behalf of investors.
The custodian can group investors' funds to achieve substantial buying power benefits they would not otherwise enjoy as individual investors. The main benefit of this is the ability to access wholesale managed funds with lower management fees and no entry or exit fees. Using a custodian also enables investors access to investment opportunities in Australia, the United States, the United Kingdom and many other countries that would otherwise be difficult to access.
What can the custodian not do?
The custodian cannot incur any liabilities in its own name or on behalf of investors. Nor can it hold investments beneficially in its own name or in the name of anyone other than the investors. As a bare trustee the custodian has no discretionary powers so it cannot undertake investment transactions without instructions from the investors.
There are types of assets a wrap cannot hold for one reason or another. It cannot hold real estate, KiwiSaver accounts and superannuation funds. There are some funds they will not hold for administrative reasons.
OneAnswer Portfolio Service is brought to you by ANZ Investments and administered by FNZ Custodians Ltd.
Our OneAnswer clients portal address is portfolio.oneanswer.co.nz