Advisers launch ethical wrap

Ruth Liew

A group of advisers has teamed up to launch an ethical wrap which focuses on socially responsible investing and green funds.

The Emerald Wrap is the brainchild of GEM Financial Planning managing director Justin Medcalf and the former head of client relationships at Australian Ethical Investment, Tim Xirakis.

The wrap, which is certified by the Responsible Investment Association Australasia (RIAA), will provide access to over 25 responsible investment funds, and includes five ethical separately managed account model portfolios.

It will also contain bank accounts and term deposits options, and give access to over 250 traditional managed funds.

“We will be actively working with Australian Ethical, Hunter Hall and any other [socially responsible investment] providers to deliver a wrap that meets the needs of advisers and most importantly their clients,” Medcalf said.

The wrap will not be limited to use by ethical advisers and Medcalf hopes it will be well received by all financial planners.

Powerwrap will provide the underlying technology to Emerald Wrap, which will have a maximum administration fee of just under 43 basis points.

The superannuation and pension option will cost around 57 basis points.

Emerald Wrap will be officially launched in February 2012, but will be available this October for a trial period.

The product’s unveiling comes after a year long consultation and planning process. Medcalf and Xirakis engaged a core group of advisers from three NSW firms, one Victorian practice and one South Australian business to develop the product.

The practices’ combined funds under advice totals more than $850 million.

A steering committee has been founded to continue with the wrap’s development and source adviser feedback to improve the product.

Two specialist engagement managers and a national marketing manager will be appointed to promote the wrap to advisers.

Medcalf and four other RIAA-certified advisers recently formed a co-operative to increase their buying power and promote advice on ethical investing.

Members of the co-operative will work together for better deals on services such as software and professional indemnity insurance.

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