Introducing the KiwiWRAP KiwiSaver Scheme
Consilium was excited to launch the new KiwiWRAP KiwiSaver Scheme at the January 2021 Partner Firm conference. In this video, Ben Brinkerhoff, Head of Partner Services and Dayle McDonald, Head of Wrap Solutions talk about the new KiwiWRAP KiwiSaver Scheme in detail and how this innovative self-select scheme can benefit investors and advisers.
Now you can.
Transcript
So today the KiwiWRAP KiwiSaver scheme is officially open for membership. We're pretty excited because after 18 months of work on this project, we're finally able to start talking about it with our advisers and help them get through the accreditation process so they can start working with their investors. Exactly. And so Ben, as an adviser, why would you bring KiwiWRAP KiwiSaver scheme into your business?
I think the key word you used there was adviser. Yes. Because I want to be an adviser. I don't want to sell something. I want to, I want to look at what I think is in the best interest of my clients, the very best solutions that I can identify, uh, for the best cost, for value, for costs. And I want to put those in my client's portfolios and, and I want to hold those solutions just adjacent to the solutions that they have in their private wealth portfolio. So everything aligns and the client gets a continuous experience.
Hmm. I think another issue, which I don't know a lot of people have thought about, but with ESG considerations being so much more important than they had been maybe the last decade, you know, investors are going to want those reflected specifically in their portfolios. And if you can manage the investments in a specific way, you can ensure that their values are represented in the portfolios. Exactly. And from the client's perspective, if they already have a portfolio with their adviser, they have the added benefit of only having to have one login where they can see all their balances in one place and the advisor can do consolidated performance reporting and the tax is all taken care of as it would be for any other KiwiSaver scheme.
Exactly. So Dale, if I want to become an adviser and work with KiwiWRAP, what do I have to do to go through that process? Great question. So the first thing is to get in touch with us. So if you already work with us, you know how to get in touch with us, but if you don't, you can find our information on kiwiwrap.co.nz or consilium.co.nz and then we'll get in touch with you and ask for some information. And once we go through that process, we'll enter an agreement and then we're good to go. Yeah, and I think the exciting thing for advisers is we're going to be able to give them a lot of support, right? So it's not just the training on the platform that allows for all this to happen, but we're going to be able to help them to understand their advice requirements for the personalised advice so they can really kind of shift from the old world where they're doing this maybe on a product supplier basis to really an advice framework where they're really being very personalised to the client and reflecting their needs in the solution. And if, if they have any trouble bridging that, we're really here to help. Exactly. And with 400 different investment options, there's more than enough choice. Right.
And what was the cost for all this? The scheme comes in at 29 basis points, so that 0.29% and additional to that are the investment fees, which depending on the investments you choose, can range anywhere from zero to 1.25%. So, uh, if I was using a portfolio with some international directs, you know, I might even be able to get away. The whole thing costs 0.29%. Exactly. And if you went for a low cost funds, you could be coming in under 50 basis points pretty quickly. Right. So it's pretty cost effective, which really allows more room for the adviser add value, but for the client to feel like they're still getting an overall good price. Correct. And the advisers can also charge a fee between zero and 0.75% per annum. Great. Well that's pretty exciting. Yes. We'll finally be here after 18 months. We look forward to working with you guys and working with your clients to give them a great experience with KiwiSaver.