Matthew Johnson

Platform and wrap provider Wealthtrac yesterday launched a new shareable App for its popular wrap product that will enable Wealthtrac members to monitor their super on their phone or mobile device.

The innovation follows the overwhelming success of Wealthtrac’s mobile shareable application for SMSFs that delivers news and information to anyone interested in self managed super.

Wealthtrac Chief Executive Officer Matt Johnson said the mobile device shareable App recognised the seismic shift occurring in the delivery of financial services and information.

Figures compiled by the federal government’s Australian Media and Communications Authority show as at May 2014 12.07 million Australians owned a smart phone.

“The penetration of Mobile Commerce or M-Commerce, defined as undertaking banking or paying bills or buying goods and services online using a mobile phone has ballooned dramatically, increasing 450% in 3 years to a point where 3.4million Aussies used an M-Commerce service during December 2013.

“You only have to catch a bus or a train in a capital city to realise its not just Facebook, Twitter and Instagram that people ‘on the go’ are accessing on their phone – they are also monitoring and managing their financial affairs.

“Wealthtrac’s new Wrap shareable App will provide direct access to Wealthtrac members’ own account to monitor daily performance, access product disclosure statements, get the latest industry news, register for direct share research, find their nearest adviser and access useful education documents.

“Using Wealthtrac’s ‘sister’ SMSF shareable App, launched last year, members can set up an SMSF, transfer assets to their fund and access information on SMSF borrowing.

“The world is moving mobile at a rapid pace and this new Wrap shareable App recognises this phenomenon.

“We have more digital innovation in the pipeline as we seek to continually improve our service to advisers and members,” Mr Johnson said.

Wealthtrac partnered with Shareable Apps to build their applications. CEO, Adam Friedman said, “We’re excited to be working with great innovators in their field and proud to produce this world first, one stop shop portal for Wealthtrac and its customers.”

Because the Apps are shareable, Wealthtrac customers and advisers can now refer new users by sharing the App with them across all mobile devices and all sharing methods.

Download and install the Apps:

Wealthtrac Wrap Shareable App – http://wealthtracwrap.shareableapps.com

Wealthtrac SMSF Shareable App – http://wealthtrac.shareableapps.com

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Wealthrac release new mobile app.

Independent wealth product distributor Wealthtrac, has launched a mobile application that is designed to deliver news and information to anyone interested in self managed super.

Wealthtrac Managing Director and CEO, Matthew Johnson, said the development was an important step forward for the business and its adviser clients.

“Our cloud-based SMSF platform brings together all SMSF administration and reporting needs into one centralised hub,” he said.  “The ease of administration and level of reporting provides significant time savings for the accountants, advisers and trustees who use it.   This means they can focus on the areas that truly add value for their clients and their business.”

“Our App will also assist in this process by providing the latest SMSF news, access to SMSF education documents and will allow trustees to find their nearest adviser.  Users will also be able to set up an SMSF.  We believe this is the first time an SMSF has allowed for this level of functionality.

Mr Johnson said Wealthtrac is committed to developing products and services that enhance the client-adviser relationship.

“At Wealthtrac, we have a very strong belief in the independent advice model and all our services aim to strengthen the adviser-client relationship.   Self-managed super is probably the most complex area of superannuation.  Unfortunately, it is also where people seek the least advice but actually need the most help,” Mr Johnson said.

Mr Johnson said he believes the ability to focus on delivering investment and strategic advice, will be what defines the SMSF advice industry in the future.

“At a recent event hosted by Wealthtrac, a number of senior industry figures expressed concern that not enough is being done to protect SMSF investors from poor investment and strategic decisions.  The debate on the enshrinement of the term ‘financial adviser’ also rages on,

“But we believe what will set qualified advisers apart from the spruikers, is education and the ability to deliver advice on complex areas such as estate planning, contribution caps, related party transactions and other trustee responsibilities.    Excellence and ease in administration tools will underpin this success, but it is the advisers themselves that will make the real difference.”

Mr Johnson said the Wealthtrac SMSF platform offers:

• Instant tax reporting, which enables advisers to optimise a client’s tax position throughout the year, instead of at year end when it is generally too late to fix a tax problem
• An in-built compliance engine, which sends out alerts if a client breaches a super regulation allowing advisers to fully protect their clients 24/7
• Wrap-style reporting tools, with mobile access, provide a range of online reports on current performance and transactions.

“Our single monthly fee starts at only $140, and we have no asset based fees, no fee based on the number of investments, and we don’t charge extra to start a pension or commute funds.”

“We believe our range of features and competitive pricing makes the Wealthtrac SMSF platform the leader in today’s market.   With new features planned for release later in the year, we plan to retain our leading position.”

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James Macken

Platform and wrap provider Wealthtrac today announced the appointment of SMSF sales specialist, James Macken as Business Development Manager – SMSF.

Wealthtrac managing director and chief executive officer, Matthew Johnson said Mr Macken will be responsible for the growth of Wealthtrac’s online administration service for self-managed superannuation funds (SMSFs), the Wealthtrac SMSF platform.

“The growth in SMSFs over the past decade has been phenomenal. Today more and more people are setting up SMSFs, with the key motive of taking control over their super and investments. Importantly, the costs of running an SMSF are often lower than the fees charged under other superannuation solutions.

“We are very excited to strengthen our distribution team with James on board. He is an astute and experienced business development manager, with strong network and relationships with advisers. He will drive the expansion of our SMSF capabilities, with a special mandate to target financial advisers.”

Mr Macken comes to Wealthtrac with more than 15 years experience in the financial services sector. Prior to joining Wealthtrac, he was a business development manager with Bendigo and Adelaide Bank for ten years, where he most recently was responsible for offering SMSF solutions to accountants and financial advisers.

Mr Macken also held roles with BT Funds Management and Perpetual Funds Management in adviser development roles. He began his career with Newell Palmer Securities Ltd and is a member of FINSIA and SMSF Professionals’ Association of Australia (SPAA).

Mr Johnson said current demand for the Wealthtrac SMSF platform had been strong.

“We have seen a positive response to the Wealthtrac SMSF platform since its launch earlier this year. Advisers and trustees like that this SMSF application is cloud-based and satisfies all of the required reporting obligations in the running of an SMSF.

Features contained in the Wealthtrac SMSF platform include instant tax reporting (allowing users to monitor tax positions progressively rather than just at year-end), a compliance engine capable of sending out warning messages if trustees are in danger of a regulatory breach, plus other reporting tools including mobile access.

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The new service, developed in conjunction with Melbourne-based JC Consulting, is back-office administration outsource service, with staff in Australia and Thailand.

Wealthtrac Managing Director and CEO, Matthew Johnson, said the service would be particularly beneficial for sole practitioners and boutique advisory firms.

“Like all Wealthtrac products and services, JC Consulting Asia is designed to support the needs of the independent adviser and allow them to spend more time on the areas of their business that add the most value.

“This outsourced model was developed by Jason Cutrupi, a highly-experienced adviser and long-time supporter of Wealthtrac.   With continuing economic and regulatory pressures, we understand that advisers need to spend more time servicing clients and growing their business and less time on non-value add administration tasks. We saw what Jason had created for his own business believed the service would benefit other members, so we have created a package that is easily accessible for all IFAs.

“We think this is an excellent example of how collaboration between smaller advice firms can help them stay competitive and ensure diversity remains within the industry,” Mr Johnson said.

JC Consulting Asia allows independent advisers (IFAs) to outsource a wide variety of time-intensive, but low revenue generating activities, to specially trained personnel based in Thailand.   The Thai business is closely managed by Australian-trained General Manager, Mookdarin Sommark and Director Richella Daly, a JC Consulting employee for more than seven years.

Architect of the service, Jason Cutrupi, MD of JC Consulting Asia said he initially developed the model to service his own business, but soon realised the broader application.

“There are also a number of sole practioner advisers that simply have not and cannot afford the human resources to grow their practice. They find themselves doing all the remedial work as well as advising,” Mr Cutrupi said.

“JC Asia is able to assist these advisers by providing a low cost service that can be switched on and off according to workload. Also with FOFA and fee disclosures around the corner, cost and time spent on administration are set to increase.  JC Asia can be utilised to produce these documents at low cost, so the adviser can email or post it out to his clients with very little effort on his behalf.” 

Some of the services on offer include:

• Risk Insurance Service (Pre Assessments, Quotes, lodgement, Follow up and Payment)
• Super Switching Information
• Superannuation and Rollover Follow ups
• Data Entry (Xplan)
• Email Entry (Xplan)
• SOA Framework Construction (we construct all the client data and the adviser puts in the advice) 80% of SOA done by us
• General Superannuation and Insurance Follow ups
• Easy Dealer Commission Entry & Report Preparation
• Tailored Solutions.

“Most services have a set fee, so advisers know exactly what they are being charged. Adhoc work is charged at $12 per hour plus GST.”

Mr Johnson said Wealthtrac will announce a number of other new initiatives in the coming months, which will significantly increase the range of services on offer.

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Wealthtrac Managing Director and CEO, Matthew Johnson, said the new pricing model was designed to give advisers greater flexibility and was better suited to fee for service models. 

“We understand the pressures advisers and clients are under in the current environment. Platform services such as ours, should be about assisting advisers to do what they do best – and that is, implementing excellent advice strategies for their clients.” 

“The value of many Australian’s super accounts have fallen substantially in the past few years and this puts enormous pressure on advisers and their clients.  We think it’s important to respond to this new environment by lowering fees and keeping our platform accessible.” 

Previously administration fees were capped for accounts in excess of $500,000 or $2,770 maximum for superannuation. Wealthtrac has lowered this to $350,000 capped with a new maximum of $2,460 and $2,385 per annum for IDPS.  

“We believe this makes Wealthtrac the lowest capped traditional platform in themarketplace,” Mr Johnson said. 

The new PDS also includes revised ASF, which provides advisers and members with the flexibility to charge for advice.   Advisers can now charge a one off ASF as either a flat dollar or a percentage. Advisers also have the option to charge an ongoing ASF as either a fixed percentage or a tiered percentage based on the administration fee tiers and the ability to charge an ongoing ASF as a combination of a flat dollar and percentage (fixed or tiered). 

“Under the new PDS, advisers will have greater flexibility to negotiate fees that suittheir business and their clients.  We have enhanced functionality in relation to ASF. Importantly, we have also reduced administration fees, which we think is always well received by new members.”

Minimum fees on amounts less than $75,000 apply.  Existing members will remain on their current administration fees, however they are able to utilise the new ASF functionality via the Management Alteration form. 

Mr Johnson said the new structures were made possible following the revision of Wealthtrac’s service level agreement with OnePath.  

“The Wealthtrac platform has been performing strongly and our funds under administration has recently passed $750m for the first time.  Under our new SLA with OnePath, we have far greater flexibility to modify our offering to suit ouradviser members.”

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However, the advisers surveyed understand that success in current markets will be as a result of smart portfolio management, rather than reliance upon new products.
 
The survey conducted by Wealthtrac over the past month found that almost 85 percent of advisers had made changes to their clients’ asset allocation in the past year.  And, while they were actively managing the portfolios, 80 percent believed they had sufficient access to products to adequately meet their clients’ needs.
 
“We all know that there is not going to be any short-term fix for today’s markets.  Therefore, we think this result shows is a maturity in the approach from advisers,” Mr Johnson said. 
 
“They are not just remaining passive and hoping markets improve.  Nor are they looking for exotic or high-risk products to generate returns.  Instead, they are looking for prudent strategies to preserve capital and achieve a reasonable level of return.”
 
The survey found the major focus of the changes had been for capital preservation (48%), an even split between income and growth focus (24%) and just five percent moving clients into cash.
 
Additionally, while capital preservation is key, most advisors are encouraging their clients to have some risk exposure. Around 70 percent said they are prepared to accept some level of risk to generate strong returns. Less than 30 percent said they are only willing to take on a very small amount of risk.
 
“We also think this appetite for risk is important.  Advisers cannot afford to leave their clients sitting in cash or they will never make up for the market losses of the past four years.”
 
Mr Johnson said it was important that advisers continued to work closely with their clients to give them the confidence to stay invested.  55 percent of advisers said their clients remained deeply scarred and bearish following the GFC.  40 percent said their clients understood market cycles are now willing to look for opportunities, but just four percent are actively seeking alpha and looking to make up for lost time.

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Wealthtrac Managing Director and CEO, Matthew Johnson, said Wealthtrac had re-signed with Oasis after considerable consideration of the needs of its adviser members both now and in the future. 

“The Wealthtrac model is different to many platforms, as the advisers who use it become beneficiaries of the Trust that owns Wealthtrac.  The agreement withOasis is very favourable for the Trust and will allow our member advisers to benefit from the future growth in value of our platform.” 

Mr Johnson said Wealthtrac did not have its own dealer group or manufactured products, which means advisers who use the platform can be confident that they will not be subject to additional competition or pressures to distribute in-house products.  

“The products on the Wealthtrac investment list are independent of the platform and are there via merit only.  We do not have our own advisers marketing our own products; nor competing for business with other members.  This means our advisers can be confident that the decisions we make as a business are in their interests, rather than just our own.” 

Mr Johnson said Wealthtrac would make further announcements about upcoming changes at the Group in the coming weeks.

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Wealthtrac Managing Director and CEO, Matthew Johnson, said Wealthtrac continues to perform very strongly against other platforms and is actively recruiting firms who wish to remain independent in the face of thecurrent sweep of buyouts by major banks and institutions. 

“Our total FUM is now just short of where it was at the peak of the market in October 2007.  Our FUM for the calendar year of 2011 rose by five per cent.  This is against the average 5.1 per cent fall in other platforms.” 

Mr Johnson said Wealthtrac had recruited a number of newadvice firms in the past six months.   The most recent recruit is the privately-owned andoperated, Stonehouse Wealth Management. 

“We have always positioned Wealthtrac as the right solution for independent advisers.  The service we provide our adviser members goes beyond simple administration, to helping them grow and develop their businesses.  We have found that this model is in strong demand as theadvisers who wish to remain independent and competitive, look to align themselves with business and services that specifically serve their market.” 

The Queensland-based firm began operating in March 2005 through the amalgamation of two family practices. Senior partners Kevin Stewart and Andrew Stewart have more than 65 years combined experience in the financial services industry.   Stonehouse has in excess of $300 million in funds under advice.

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Wealthtrac Managing Director and CEO, Matthew Johnson, said Wealthtrac was performing very strongly against other platforms on the Oasis network and that he is working with the advisers who use the platform to identify new revenue streams. 

“Since July 2011, Wealthtrac increased its FUM by over ten percent, in a market that fell by ten percent; that’s a 20 percent differential.  By comparison, the FUM of our peers has fallen very much in line with the market.” 

Mr Johnson said that Wealthtrac had been consulting with the adviser members of the Platform to identify new revenue streams and find ways to reduce costs for the end users. 

“There is no question that advisers are still under significant pressure to find ways to run their businesses more efficiently.  And clients are demanding more from their advisers in a market where investment returns andrevenue streams are under pressure.  Therefore, cost reduction is imperative as is innovation to introduce new services,” Mr Johnson said. 

“We have already found a number of ways to reduce end-user costs, which we will introduce in the coming months.  We will also be introducing a number of new initiatives later in the year that we have identified with our advisers as future revenue streams.  We will be releasing further details later this year.” 

Mr Johnson said that as the advisers who use Wealthtrac have an ownership of the business, it is imperative they form part of the consultation process when making any changes to the business. 

“The ownership model we have at Wealthtrac is different to many platforms, as the advisers who use it may become beneficiaries of the Trust that owns Wealthtrac.  Advisers have the potential to benefit from an increase in value of the Wealthtrac platform over time.  Therefore, they areintegral part of shaping the future direction of the platform.”

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