Almost $700 million of NZX Wealth Technologies platform money is up for grabs following a review by long-time client, Public Trust.
In a tender that closed off last week, the government-owned trustee company says it “is looking for credible providers to partner with who have the capability, experience and infrastructure to deliver WRAP platform capabilities to Public Trust clients”.
“They need to have a good track record in the management and implementation of WRAP platforms and effective networks and strong relationships within their local community,” the tender document says.
However, the gig is for administration only as Public Trust will retain custody duties in-house.
Public Trust was an early adopter of NZX Wealth Technologies predecessor, Apteryx, for its wrap service, used by internal financial advisers to manage client investments on its Personalised Portfolio Service (PPS) and other investments.
The PPS is open to wholesale trust clients with at least $1 million to invest. Currently, the Public Trust investment service lists Vanguard as global shares manager along with Morrison & Co and a host of other NZ private equity firms for alternative assets. Public Trust manages the PPS cash, fixed income and Australasian shares portfolios internally.
In total the PPS holds $265 million with a further $420 million or so included in the platform tender, representing just over 20 per cent of NZX Wealth Technologies approximately $3.3 billion in funds under administration. However, Public Trust has about $1 billion overall managed via the platform.
The NZX-owned platform is in the throes of transferring the Apteryx legacy clients – which includes Public Trust – to its new technology version, currently occupied by JB Were and Craigs Investment Partners.
Both the $4 billion Hobson Wealth and Auckland firm, Saturn Advice, are due to shift to Wealth Technologies from the Aegis (now MMC Wealth) platform over the next few months.
Furthermore, the NZX has penciled in Wealth Technologies FUA rising to about $20 billion by late 2020 (probably fueled by more Craigs money) with a target of between $35 billion to $50 billion by the end of 2023.
While the Public Trust tender has excited some interest from potential platform partners, the offer could just be regular mandated tyre-kicking.
Public Trust told bidders it “periodically checks with the market as any responsible provider does for their clients”.
Headed by Glenys Talivai, Public Trust reported about $14 billion in “asset under custody” held on behalf of 50 clients including five KiwiSaver schemes.
According to the tender document, Public Trust intends to run a short-list beauty parade early in November with the final decision due by the end of the same month.