A host of City titans list among Netwealth’s 28 initial investors, funding the firm’s £6.5M launch. They include Jupiter vice-chairman Edward Bonham Carter, EFG founder Michael Hartweg and Harvey McGrath, the philanthropist and former Prudential chairman. Rather than targeting the mass market, the company aims to tap into the wealth management client base, such as those customers serviced by Rathbones, St James’s Place and Brewin Dolphin.
Former executives at Goldman Sachs and JP Morgan have launched an online discretionary fund management service which aims to counteract criticism over the industry’s lack of fee transparency. Netwealth Investments, which officially launched today (23 May), is the brainchild of Charlotte Ransom and Thomas Salter, who came up with the business idea a year ago. While the investment manager will be able to service consumers directly, the two founders also plan to partner with advisers to offer its services to “asset-rich and time-poor” clients. Speaking to FTAdviser, chief operating officer Mr Salter, who was previously a managing director at JP Morgan, suggested many of the current DFM players in the market create an “illusion of bespoke” by tinkering with ready-packaged portfolios.