When providing good, independent advice to our clients, it is always important to ensure that we achieve the required long-term returns according to the respective portfolios invested in, but it is equally important to ensure that the total fees our clients pay on an annual basis are competitive, and preferably achieve a lower fee structure than our clients can achieve anywhere else.
For this reason, we have enjoyed a long relationship with Morningstar as our Discretionary Fund Manager (DFM) in order for our clients to benefit from the global presence and expertise Morningstar do provide. At Morningstar their philosophy is that People, Process, Parent, Performance, and Price are the fundamental areas that prove to be vital to a fund’s long-term success. These five pillars form the backbone of their research approach, and they evaluate each of them when assessing a fund. When evaluating the pillars, they not only look at them individually, but also seek to examine interaction between them, which we believe is crucial to understanding a fund’s overall merit within client portfolios.
At Resolute Wealth Management and Morningstar alike, we are committed to minimizing costs. One of the ways we achieve this is by negotiating preferential fee classes from the asset managers we work with. We are pleased to inform you that we have secured preferential fee classes with two asset managers on the Allan Gray platform within certain of our local portfolios. The fee reduction will apply to all existing investors within the Resolute Wealth Portfolios listed below, as well as to all future investors in these models, and the necessary changes have already been actioned in order for our clients to benefit the reduced fee structure.
SUMMARY OF CHANGES TO THE PORTFOLIOS
We will not be making any changes to the fund managers or the asset allocation of the Resolute Wealth Portfolios. However, we will be switching the following funds into their preferential fee class:
- Nedgroup Investments Core Bond Fund
- Nedgroup Investments Core Global Feeder Fund
- Coronation Strategic Income Fund
THE FOLLOWING RESOLUTE WEALTH PORTFOLIOS WILL BE POSITIVELY AFFECTED
Resolute Wealth Income
- Resolute Wealth Conservative
- Resolute Wealth Balanced
- Resolute Wealth Growth
- Resolute Wealth Flexible
Given that the change will be a class switch, there will be no CGT impact for investors.
As mentioned above, we do always want to maintain a very competitive fee structure for our clients. As indicated below, you will see that the Fund Management Fees our clients enjoy, including the DFM fee of 0.20% excluding VAT, is substantially lower on all of our portfolios than the sector average for each respective portfolio. This ensures that our clients not only receive a preferential fee, but enjoy the added benefits which Morningstar provide to Resolute Wealth Management in ensuring that our clients are always invested in the best suited funds according to the respective portfolio mandates.
At Resolute Wealth Management we are committed to ensuring we always provide our clients with the best possible advice, and this includes making use of the best suited platforms and service providers for our client’s needs. If you are unsure of anything included above, or would like clarity on any of the services we do offer, please reach out to your RWM Private Wealth Manager and we will gladly assist where possible.