Novia Global, the recently-launched, Bath, England-based offshore platform aimed at international intermediaries, said it has added a range of exchange traded funds in a choice of major currencies.
The range, consisting of more than 100 ETFs, including physically-backed and synthetically-replicated investments from nine leading providers, is being offered in a choice of sterling, US dollar and euros versions, Novia Global said in a statement.
Additional providers will be added in response to demand, Novia Global said.
The international platform services provider said it’s offering the ETF range in conjunction with Winterflood Business Services, a London-based dealing, custody and settlement services firm which is part of the Close Brothers Group.
“The suite of ETFs will include those listed on both the UK and European exchanges, and with the trading being aggregated, the cost is minimised by sharing the trading fees with [others] transacting that day,” the Novia Global statement said.
‘Response to demand’
Novia Global’s head of customer service, Dave Field, said the new ETF offering was being provided in response to “an enormous and rising demand for ETFs from both within our European jurisdictions and from further afield, where ETFs are more commonplace than they are in the UK”.
This demand, he added, was being driven “not only by our international intermediaries looking to provide their clients and investors with the precision investment, granularity and traditionally low cost alternatives that ETFs can offer” but also by interest from discretionary fund managers, who, he noted, “are increasingly using these instruments in their model portfolio building for accurate asset allocation”.
Novia Global has itself recently launched a discretionary management service, via strategic partnerships with asset managers Marlborough, Smith & Williamson, MitonOptimal, Tavistock Investments and Copia Capital Management, several of which, according to Field, are themselves embracing ETFs.
Novia Global said access to ETFs on its platform has been “fully integrated” into its wealth management service, and will be available across the platform’s relevant wrappers. It said the trading charge for the service will be taken from the cash account, and is set at five basis points per order for UK instruments (subject to a minimum of £5 per trade), and eight basis points per order for international instruments (subject to a minimum of £10, $14, or €12.50 per trade, depending on the jurisdiction the ETF is listed in).
There will also be a settlement fee, which will vary according to jurisdiction, Novia Global said.
Available to advisers, private banks, trusts
Novia Global’s services are available to advisers in the international market, private banks, trust companies and their clients as well as certain other professional investors, noting that its clients currently include advisers and trust companies in such jurisdictions as the Channel Islands, Isle of Man, Gibraltar , Switzerland, the Cayman Islands, Europe and Hong Kong.
Novia Financial, the parent company of Novia Global, entered the UK wrap platform market in October 2008, with an operating system provided by Australia’s GBST, which has been developing software services for investment fund administrators and financial services providers since 1996.
Novia Global was launched in 2015 to provide a comprehensive wealth management service, or “full wrap platform”, to investment advisers and their clients in the international market.
The Novia team is headed up by Bill Vasilieff, the former sales and marketing director and joint co-founder of Selestia, another UK platform operator, which was ultimately integrated into Skandia’s platform operation.
Vasilieff has said the company is looking to expand rapidly into the international advisory space, where a growing shift in the direction of greater regulation is driving a move towards more transparent wealth management systems, of a kind that platforms are able to deliver easily and cheaply.