There are several certainties when it comes to investing; risk and reward are related, diversification reduces risk, asset allocation determines portfolio performance and an investor needs to maintain discipline no matter market conditions.
The final certainty is fees matter! They matter a lot because they’re a drag on investment returns. At FYG Planners, we’re mindful of fees clients pay. Our commitment as a financial planning licensee is to look for ways to drive down fees whenever possible.
With this in mind, FYG Planners have successfully negotiated market leading fee reductions with one of our platform providers (where money is held) for clients on their platform.
We believe our AFSL has achieved a particularly good outcome that came in two components:
A reduction in administration fees for super and pension clients.
And
Lowering the pricing cap of for all non-super accounts and for all super/pension accounts. Along with grouped pricing for up to 6 related family accounts.
Previously, fee capping didn’t occur for clients until a much higher level and there were no family grouping benefits.
You may notice we haven’t included specifics on the platform provider or the exact fees due to confidentiality reasons, but if you’re a client, advisers will be more than happy to discuss these with you in person.
We’re proud to say for FYG this is the 5th admin fee reduction we’ve achieved in the last 15 years. Importantly, given the potential growth of FYG Planners and its buying partners in the Asset Class Investing Group, we expect they will be pushing to negotiate further discounts in the future.
In 2010 FYG’s “buying group” (FYG and 4 other firms) had $1.2 billion under management with this platform (FYG was about $600m). Today it is over $3.0 billion (which FYG represents over $1.45b).
Finally, you may notice the doubling in funds under management between 2010 and 2015. We believe this growth underlines, that our advisers and their clients are ahead of the curve in partnering with a privately owned financial planning licensee.
Investors across Australia are beginning to realise what our advisers and their clients have known for a while – it’s better to have a financial adviser who works for their clients rather than one who works for a bank or institution.
This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.