Firing line  

'I knew too much to want to give my money to anybody else'

Ms Ransom adds: “That for me is a powerful indicator of what technology can do and the benefit of pooling assets and driving fees down.” 

She says Netwealth can afford to charge lower fees because of this network and not employing an excessive amount of staff. 

“If you look at traditional players, they have a very significant cost base they have to maintain. They have bricks and mortar, expensive sales forces,” she says. 

“It is extraordinary that we still have firms charging between 2-3 per cent per annum. You have firms like ours who are charging more like 0.7 per annum for clients with £500,000 or more,” she says.  

According to Ms Ransom, several people are neglecting their pensions while calculating their wealth or investable assets.

“If you ask people how much money they have, they may not think about their pension, because it is parked as something I am not going to touch until I am 65, maybe even later.”

In April 2019, Netwealth launched a managed portfolio service to allow financial advisers to access its investment proposition for the first time.

“Given we are a firm that believes in advice, we wanted to make sure we had an offering that would be simple for IFAs to work with,” she says.

The MPS is available through the Transact platform, and gives advisers and their clients access to seven risk-return portfolios, with strategic allocations to currencies and passive instruments including exchange traded funds. 

Ms Ransom suggested Netwealth could be distributing the MPS on other platforms in the future.    

“By putting our MPS on Transact, IFAs that use the Transact platform have direct access to Netwealth and it gets consolidated down into their reporting. This is a nice way to deliver the portfolio service to IFAs and is consistent with the notion of the end client both getting Netwealth portfolios and receiving advice through the IFA community.” 

She adds: “One question would be whether we decide to work with more platforms other than Transact. For now we are trialling it with Transact and we will see how that goes.”

Saloni Sardana is features writer at FTAdviser and Financial Adviser