A company specialising in managing funds for the super-rich has launched a new pension plan with wider appeal.

Granaway Wealth Management has teamed up with insurance company Freisenbruch-Meyer to create a plan that cuts down on fees — increasing the pension pot for clients.

Granaway’s Ryan Kromer and business partner Dominic Powell, who worked together at HSBC’s private bank investment group, founded the firm six years ago.

But Mr Kromer said a partnership deal with Freisenbruch-Meyer meant the company could turn its sights to investments for people of more modest means.

Mr Kromer added: “It’s a game changer for the industry and it’s a big deal for employees where their money can work for them.”

He said: “Freisenbruch is the lowest cost pension administrator and we can carve out close to 1 per cent in many cases which over many years is a very big deal.

“The other providers, if they are insurance companies, they’re focused on healthcare, all the various things they do. Pensions is incidental business for them.

“For us, all we do is focus on portfolio management.

“We couldn’t offer our services to the masses, but once we teamed up with Freisenbruch as administrator, we could.”

Mr Powell said: “They concentrate on administration and we concentrate on management, so clients get the best of both worlds with dedicated resources.”

“The big difference is the dynamic low-cost approach we are taking.”

The pair, both chartered financial analysts with a combined total of more than 40 years in money management, were speaking at the firm’s modest offices in the Boyle Building on Queen Street, Hamilton, where they manage more than $100 million in assets.

Mr Kromer said: “It’s a no-frills operation. Everything is low cost.

“Freisenbruch is more boutique, smaller and focused on client service, the same thing we’re focused on.”

Mr Kromer added that typical investment-management charges amounted to 1 per cent, while mutual funds, a common investment vehicle, charged 1.5 per cent.

But he said: “Granaway charges only 0.7 per cent and does not receive any other commission or fees.

“The only way we increase our revenue is by growing and protecting client portfolios. Therefore, not only are our services inexpensive, they align our interests completely with that of the client.

“The other big thing is we don’t use mutual funds. Typically, there are management fees and they aren’t very flexible.”

The firm has already signed up five businesses as clients of the new pension scheme.

Mr Kromer said: “It’s been very compelling as soon as they hear what we are doing.”

He added that too many pension schemes left the choice of how to invest money to individuals, who may not have expertise in the money markets.

Mr Kromer said: “The onus should not be put on the employee, but it’s the nature of the industry right now.

“It’s comforting to know it’s dynamic and being adjusted for the market.”