A new healthcare investment fund that backs into Dimensional Fund Advisors (DFA) based products has gone live under the Fettle brand.
Founded by renal specialist, Dr Colin Hutchison, Fettle feeds into the new ACI investment product range developed by Hastings-based financial advisory, Stewart Group.
As reported in April, the ACI funds mirror products offered under the Asset Class brand available via the Booster KiwiSaver scheme. Stewart Group serves as investment adviser on the Asset Class funds that feature DFA as underlying manager.
However, the ACI products have been established with fund-hosting firm, FundRock NZ (previously known as Implemented Investment Solutions).
Hutchison said the Stewart Group emerged as a logical partner for Fettle, which was set up to broaden access to ‘gold standard healthcare’ through pre-funded savings accounts.
“When choosing a finance partner to oversee the management of our members investments we looked for a local New Zealand led and owned company with values similar to our own,” he said. “With the Stewart Group we found a locally owned and operated investment firm who have a strong track record of growing peoples’ investments, in tax-efficient methods through funds with a focus on ethical and sustainable opportunities.”
The ACI funds come in two basic flavours – conservative and growth – with a balanced option available as a 50/50 blend.
Fettle differentiates from other investment savings schemes through a focus on delivering co-ordinated private health services and advice if clients require medical procedures, Hutchison said.
“Having the money available to pay for your healthcare is only part of the process of receiving ‘good healthcare’. Other components are understanding what you should have done, when, where and with whom – and then how much you should be paying for your healthcare. These wider aspects of helping people receive great healthcare are what Fettle is all about.”
While Fettle competes somewhat with health insurance, he said the pre-funding model is more complementary to traditional risk management approaches that typically ratchet up in price as clients age.
“Having practiced medicine for nearly 25 years I have seen that one of the challenges people have with Health Insurance is that following many years of paying insurance premiums they frequently get to a point at which these premiums become unaffordable and drop their insurance,” Hutchison said.
“Fettle complements Health Insurance by helping individuals and families contribute regularly to a savings fund which is invested for growth so that in future years they have money available for their healthcare needs.”
He said Fettle was envisaged as a kind-of KiwiSaver-for-medicne to help New Zealanders gain access to quality treatment as needed rather than relying on the vagaries of the public health system.
“Having had the opportunity to work in senior leadership roles in the public and private healthcare, I have seen the need to help more people access healthcare here in New Zealand. Inspired by Kiwisaver it just made sense to help people save up for their future healthcare needs.”
Fettle members can choose contribution levels “following a comprehensive review of your current health status and potential future health needs by our clinical team” with flexibility to adjust payments “to suit your circumstances”, the group’s website says.
As well as heading Fettle, Hutchison is managing director of the Kaweka Health private hospital network (which opened its first location in Hastings last year) and director and co-founder of the AskDora artificial intelligence medical practice management system.
AskDora co-founder, Georgia Palmer, is also Fettle operations manager.