Dilip Sankarreddy
Changes to superannuation, particularly the $500,000 life-time cap on after-tax contributions to superannuation, have left wealthy investors searching for a new cost-effective structure in which to accumulate wealth, and automated investment management solutions could be the answer.
QuietGrowth CEO, Dilip Sankarreddy, said: “Millennials have been early adopters of automated investing solutions around the world, including Australia. However, we are noticing that affluent clients are also experimenting with these services. Now with proposed changes to superannuation, wealthy individuals in Australia are on the lookout for alternative structures in which to continue to accumulate wealth for the long-term and, with its low costs, diversified and transparent approach to investing, we believe that our automated investing service is ideally placed to provide wealthy clients with the right solution.
“As superannuation no longer provides high net worth individuals with an unlimited tax efficient wealth accumulation vehicle, low-cost investing will gain more traction,” he said.
Krupakara Chinnasani, Director of QuietGrowth Australia, said: “Traditional players are under pressure to justify the fees they charge as automated investment advisers gain acceptance. We at QuietGrowth are charging a fraction of what traditional service providers are charging. Our fees range from 0.4% to 0.6% of the portfolio value, and this includes the trading costs. We are observing that a sizeable section of high net worth individuals with significant investable assets are savvy investors, and are looking out for low-cost solutions such as ours.”
QuietGrowth notes that this is in line with what the business consultancy Accenture had revealed earlier this year that in the US nearly 15% of clients in certain firms have invested at least US$1 million in automated portfolios.
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