Stewart Group welcomes advisers to mid-market ACI Funds

Stewart Group managing director Nick Stewart says the new funds which are based on Dimensional Fund Advisors (DFA) strategies address the gap in investment options between KiwiSaver and bespoke wealth management.

Current products cater to two categories; clients who can afford a minimum contribution of $250,000 and those whose only main option, beyond the family home, is KiwiSaver.

ACI Funds which are structured as PIEs with a low minimum entry of $50 act as a financial ‘barbell’ , says  Stewart. The funds are diversified across markets, asset classes, countries and sectors. The minimum investment opens the scheme to a much wider audience than traditional wealth investment, he says.

“Everyone can get into KiwiSaver with a few pennies but there isn’t a transition to bespoke wealth management advice if you have less than 250,000 and many firms will tell you that $250,000 isn't enough, it’s more like $750,000.