In the world of finance, many establishments have taken advantage of non-transparent fee systems, resulting in overlapping charges. Such intricate fee regimes often deter Family Offices from meticulously tracking their investment strategy execution fees. In this landscape, custodian banks, with no particular stake in the game, offer minimal assistance in fee monitoring.
Enter GreenLock’s fee optimisation.
In 2022, a collaboration was forged between WealthArc and GreenLock. This union unveiled the enormous advantages fee optimisation could provide to both Single- and Multi- Family Offices. It wasn’t long before the two entities identified strong synergies in their core operations, where each could enhance the other’s capabilities, leading to unparalleled value propositions for prospective clients.
So, how exactly does WealthArc make a difference?
WealthArc has made a mark for itself through its exceptional data transfer models, tried and tested in the successful creation of 116 custodian connections. Central to WealthArc’s batch data transfer system is a unique engine, a brainchild of their data scientists and engineers. This technology ensures data coherence and consolidation before forwarding it to GreenLock. In the subsequent step, the GreenLock engine delves deep, performing an exhaustive fee scrutiny on past transactions and investment products found in a portfolio.
But what’s the true potential for fee reduction?
GreenLock brings to the table a rigorous analysis and market benchmarking of various fees, including custody, transactional, Forex exchange rates, and product fees. Their evaluation yields significant savings suggestions. These insights pave the way for mirroring existing strategies but at diminished fees.
As per GreenLock, they’ve managed to secure average client savings between 0.5% to 1.5% of Assets under Management (AuM). For a standard client with AuM between $30m and $250m, this translates to notable reductions in investment fees. Impressively, these substantial savings can be witnessed as early as the first quarter post the recommendation implementations.
Yet, at its heart, transparency remains pivotal.
The alliance with GreenLock has marked a pivotal transition. The much-needed transparency and genuine benchmarks offered by GreenLock provide a fresh perspective. With this enriched data at their disposal, identifying inefficiencies in current fee systems and initiating informed negotiations becomes feasible.
What’s truly commendable about this venture is the undying commitment to client welfare. By endorsing transparency and integrating GreenLock’s fee optimisation, it’s evident that there’s a dedication to delivering direct advantages to clients. Such unparalleled commitment makes one stand out as a dependable ally, ensuring unmatched value and cultivating deeper client trust.
As we stand on the cusp of a new era in wealth management,
Together, WealthArc and GreenLock are poised to challenge the traditional, opaque fee mechanisms. This collaboration signifies a commitment to a more open and effective milieu, promising advantages not only to clients but also setting a higher benchmark in the industry.
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