Auckland-based consultancy firm, MyFiduciary, has scored its first offshore client in a deal to supply a total model portfolio service to the Australian arm of specialist trans-Tasman advice firm, MedCapital.
Aaron Drew, MyFiduciary principal, said the arrangement includes providing “asset allocation, fund selection and ongoing monitoring” to the Gold Coast-based business.
The fast-growing MyFiduciary has provided similar services to MedCapital NZ for about 18 months, Drew said.
“A lot of our research and tools are applicable in the Australian market,” he said. “But obviously there are differences in tax, currency and interest rates to take account of. There’s also a much larger product suite to consider in Australia.”
MedCapital is the financial planning arm of the specialist medical professional services group founded by NZ entrepreneur, Dr Sam Hazeldine. The wider business began in NZ as a medical recruiting outfit before launching a financial advice division under the MedCapital banner in 2018. MedRecruit is now the largest medical recruitment firm in Australia and NZ.
MedCapital later established an Australian financial planning business, headed by country manager, Cathy Mackey. In Australia the group has five advisers (plus a tax specialist) operating via the licence of Libertas Financial Planning.
The NZ version, which features Jon Collier as country manager, boasts seven advisers under the new MedCapital financial advice provider (FAP) transitional licence.
Medical professionals are a traditionally lucrative target market for financial services businesses given most practitioners tend to be highly paid but ‘time poor’.
In NZ the long-established Medical Assurance Society (MAS), for instance, has built a diverse financial services offering to the local healthcare sector, spanning insurance, advice as well as KiwiSaver and superannuation schemes. With about $800 million under management, the MAS KiwiSaver is the largest restricted scheme in the sector.
However, MedCapital is built around a ‘holistic’ advice model covering investments, tax, retirement planning etc – operating like a “family office”, according to the group website.
The offer includes a $1,000 annual membership fee that opens the door to a broader range of underlying services.
Currently, MedCapital has the SuperLife, Simplicity and Consilium-backed ‘KiwiWrap’ KiwiSaver schemes on its approved list along with a small suite of 14 active and passive funds – about half dressed as portfolio investment entities (PIEs) and the others as Australian Unit Trusts.
The Christchurch-based Richard Clark is chief executive officer of the Australasian MedCapital business.
Drew said MyFiduciary already had some business in Australia through its governance training and CEFEX investment fiduciary certification services (including to the IOOF-owned Shadforths group). However, MedCapital represented its first investment consulting client across the ditch.