Novia Global and Morningstar Wealth Platforms are prominent global investment platforms catering to financial advisors and their clients. Both are only a handful of fee-based only platforms in the advisor lead offshore investment platform space. This article will aim to compare the features and offerings of both Novia Global and Morningstar Wealth Platform which I consider two of the best platforms in this category to aid investors to make informed decisions about which platforms to use.
A note to start, if you are not using these platforms already with your advisor and using others such as offshore bonds and saving plans would highly encourage you to ask why not? As these are two platforms that allow for clean funds, are relatively cost-effective, have no lock-in periods and exit fees, fee-based platforms. These platforms allow for no conflict of interest between you and your advisor and unlike saving plans and offshore bonds are not commission lead.
Regulation:
Novia Global operates under registration in Jersey and is regulated by the Financial Conduct Authority (FCA). On the other hand, Morningstar Wealth International Limited holds a license in Jersey and is regulated by the Jersey Financial Services Commission for Investment Business.
Safety:
Novia Global’s platform entrusts its custodial responsibilities to Pershing, a subsidiary of the Bank of New York Mellon Corporation. Pershing boasts a substantial track record, safeguarding over $2 trillion in global client assets, with a net capital exceeding $2 billion. Novia Global operates as a privately owned enterprise.
Morningstar Wealth Platform relies on sub-custodians for the secure custody of client assets, with Northern Trust being one of its notable partners. Northern Trust, a leading custodian, holds an exceptional AA rating at the Global Custodian level and manages assets under custody totaling over $10 trillion.
Morningstar, Inc., the parent company of Morningstar Wealth Platform, is publicly traded on the NASDAQ. With a presence in 29 countries and a global workforce exceeding 9,000 employees, Morningstar, Inc. operates on a large scale.
Both platforms implement segregated client accounts, ensuring the safety of your funds in the event of insolvency from either company.
Cost/Charging Structure:
Novia Global offers the Global Investment Account (GIA) without any setup fee. However, it’s important to note that your advisor will charge for the provided advice, both initially and on an ongoing basis.
Novia charges:
| Fee per annum | Value |
| 0.29% | over £1m |
| 0.34% | under a £1m |
These fees include a Pershing charge of a custodian fee of 0.04%
Fees are taken monthly in arrears of the current value
Morningstar Wealth Management Platform
Zero setup fee (although your adviser will charge you for the advice provided both initially and ongoing)
Ongoing platform fees are as follows:
Northern Trust custodian fee is built into the below. Fees are also taken monthly in arrears of the current value.
| Fee per annum | Value |
| 0.03% | over £5m |
| 0.07% | £2m – £5m |
| 0.14% | £1m – £2m |
| 0.21% | £500k to £1m |
| 0.28% | £250k – £500k |
| 0.35% | under £250k |
Platform technology: Novia
The portal itself is pretty easy to use (see figure below)
The figure below: Novia Home Page Portal
Novia has aspects such as the investments research hub and risk profiler exante illustration. It allows clients to look at detailed graphs of the funds as well as produce reports for clients. (see images below).
Also, Novia gives a range of options to view funds that are powered by Trustnet. This allows you to look at the KIDD, Prospectus, and Factsheet as well as the allocations, performance, and risk. See the images below of the Novia Global platform:
Praemium Platform Platform Technology
For me having a play around with the portal, is fairly easy, and from a client’s perspective, it’s easy to navigate and see your investments.
It works with wealth crafts that use the Oxford risk to help model portfolios and for advisors, this can be a useful tool to help automate the risk profiles.
As well as this you have CGT calculators, bulk rebalancing, and portfolio anaclitic.
If you have transferred your pension you have trust options as well as those looking for IHT planning have the ability to wrap into a trust.
See the figure below for the portal specifics
Praemium Portal
Adviser Fees:
Both Novia Global and Morningstar Wealth Platform allow advisers to charge fees, including up to 5% for initial fees and 1.5% for ongoing management. However, it is more typical for adviser charges to fall within the range of 3-1% for initial fees and around 1% for ongoing management.
Fund Range/Investment Choice:
Novia Global provides a wide selection of funds, with over 8,000 options available. This includes FTSE 100/S&P 500 listed shares, Discretionary Fund Managers (Model Portfolios), Mutual Funds, ETFs such as Vanguard and Ishares, and structured products.
Morningstar Wealth Platform offers an extensive fund range that encompasses all the options provided by Novia Global, as well as equities listed on Nasdaq, CAC, and DAX. They also have a larger selection of Discretionary Fund Managers. Funds are available in major currencies, with a strong offering in GBP, USD, and Euro.
Account Minimums:
There are no specific account minimums; however, as these platforms are adviser-only, your adviser may have their own minimum investment value requirement.
Products:
Novia Global offers a Global Investment Account (GIA) and International SIPP (Self-Invested Personal Pension).
Morningstar Wealth Platform provides a General Investment Account, International SIPP, ISAs (Individual Savings Accounts), and US-compliant investment accounts. The US-compliant accounts include managed portfolios for US taxpayers, offered by specialized discretionary managers. Morningstar also handles the necessary paperwork, such as producing a 1099 form, and ensures the investments are not classified as PFIC (Passive Foreign Investment Company).
Client Accessibility:
Novia Global accepts clients from around the world, except for the United States or any individuals connected to the US.
Morningstar Wealth Platform grants access to individuals worldwide, including US-connected individuals.
Exit Penalties/Minimum Investment Period:
Both Novia Global and Morningstar Wealth Platform operate as fee-based platforms and do not impose exit penalties when withdrawing funds. This applies to both invested funds and leaving the platform itself.
Tax:
For non-US-connected individuals, there is no formal literature on the tax implications; however, the platform is considered tax-efficient. In most locations, as long as the funds remain within the platform and are not withdrawn, there is no tax liability. When withdrawing funds, Capital Gains Tax (CGT) would be applicable based on the country of residence. US-connected individuals are subject to US tax brackets and taxation on growth. It is essential to consult with a local, regulated tax expert for personalized tax advice
Conclusion
I don’t think these platforms differ too much in terms of pricing, technology, or fund range and would be subjective (other than for U.S connected personnel) to personal preference which personal prefers.
As both are great platforms in the offshore space for clients and advisors to use for clients. Being fee-based and transparent without any lock-in periods. I would state that both platforms should be the way forward for 95% of personnel and would question any advisor not looking at these platforms (or others like these) without giving a detailed explanation of why.
If you want to read some more content, here are some more articles on platforms:
- https://investmentsforexpats.com/saxo-bank-vs-other-platforms-review/
- https://investmentsforexpats.com/best-investment-platforms-for-expats-2023/
If you prefer to watch some videos, here are some I have recorded:
