This move is expected to bring a much lower-cost to those who choose to be mutual fund advisors. It is also said to be much better when it comes to fund distribution and the platform NEO Connect and even Univeris Corp are said to be included. They have announced a partnership that will give a lot of people access to NEO and even NEO listed funds. Univeris is a wealth-management tool that is software based. It is currently used by over 15,800 licensed advisors and now they are all going to be given access through the NEO platform. This is actually a sister company to the NEO exchange and this is going to let those who work with PTFs and even mutual funds the chance to better their own investment.
Before this partnership even happened, those who invested in mutual funds were not given the chance to work with PTFs and this is especially the case with the NEO platform. It is said that these were only made available to those who work in security advice. Now, 50 PTFs will be given, or at least made available for mutual advisors to invest in. The funds are also designed to be fee-based and this is going to make them very similar to ETFs. Advisors can even choose to place a PTF order through an equity platform and this is the same way as it would be if it were an ETF or even a stock.
When you look at ETFs however, you’ll find that there is no minimum investment requirement and that the orders are fulfilled with an end of the day net asset value. This gives investors the chance to get access to much better pricing and it also gives them the chance to avoid any bid-ask spreads as well. The biggest draw for potential investors is all down to the fund management fees. This ranges from 0.4% to 0.8%. When you compare this to the F class, you will see that this stands at 28%. This list of 50 products is said to grow even more as fund managers keep on joining the platform.
When you look at the partnership between both NEO connect and even Univeris you will find that this is a game changer and that the asset management industry is certainly going to benefit from this. This is the most efficient way to try and transact mutual funds at their lowest possible cost. This hasn’t been accessible in the past but it is certainly accessible now. If you were to integrate NEO connect with the wealth management that Univeris has to offer, you will find that both parties can benefit from this and that this could bring around some incredible benefits. Since they launched in 2016, NEO connect has actually gone on to service more than $500 million assets. This is all done in the fee-based advisor community and the integration between this platform and the next is certainly something that is worth taking into consideration.