Mint offers new fee option to help advisers
Mint Asset Management has started offering a new service to help advisers charge a fee to their clients, but also to provide a way to get advice to people with smaller balances.
Wednesday, June 19th 2019, 6:01AM
Mint's Head of Sales and Marketing, David Boyle, says one of the issues facing advisers is how to get advice to people with smaller balances.
The majority of advisers who work on a fee basis generally are only interested in taking on clients who have portfolios of at least $500,000 or even $1 million. However, most New Zealanders have balances below these levels.
He says there is a need to get advice to more New Zealanders and Mint's new model is designed to do that.
Under the model advisers can charge a fee-for-service, and in this case the fee will be deducted from clients' investment balances.
Advisers are free to charge whatever fee they want, but it has to be reasonable, Boyle says. Mint won't be telling advisers how much they can charge.
The firm has run the concept by the Financial Markets Authority and they haven't opposed it.
Boyle says with low and falling interest rates investors and advisers have to look at other options to generate income for clients. He says firms like Mint have a range of funds which can help address these needs.
"Investors (wanting income) "can't afford to leave money in banks," he says.
There is growing research that shows advised clients get better outcomes than those taking a DIY approach.
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