Another article I wrote over 10 years ago about the use of model portfolios. Whilst the authoring and implementation of model portfolios have separated, the standards to monitor implementation effectiveness have yet to emerge, yet I suspect they still will.
With so much industry, consumer and regulatory change on at the moment, many firms may benefit from taking a step back and looking at what is going on, and consider the end game (or at least as far as one can see at the moment). Some of the constants are: that to be in business, one must [...]
We see a lot of private wealth management firms that use excel as the basis for modelling and making decisions on client investment portfolios, and see some distinct commonality in their journey, which is typically: Stage 1 : A motivated set of professionals start a wealth management business with passion and wanting to deliver a [...]
Congratulations EY on a to the point and informative web briefing on the Banking and Financial Services Royal Commission. Some really key points that I noted that are relevant in wealth management: Fee for service threatened viability Oversight controls mandatory - significant compliance hcllenge Opportunity for independent quality robust models Value of advice questioned Non-tolerance [...]
Plenty of discussion post Royal Commission Question of viability for fee for service advice model without conflicted remuneration Questions of advice renewal, whether see value of it Question of whether consumers will pay for advice in it's raw form, Productised offers, very little money for advisers, any many questions Client tailored portfolios blend advice and [...]
I read somewhere recently: Products are rapidly evolving into services, these are more connected to customers ecosystems and provide holistic experiences that are meaningful beyond the product/touchpoint. Creating products that live in isolation are progressively disappearing, and one may say that “There are no products, only services” Whether it is these words or others to [...]
We often get asked what the ideal client for Financial Simplicity looks like ? The answer is quite straightforward; our value proposition optimally services firms who: Service their clients with investment portfolios, often including listed securities, and prefer to have this process managed in-house Have a foundation of packaged investment research using model portfolios (or mixes [...]
A lot of people ask us why Financial Simplicity’s entirely automated and personalised portfolio modelling process is something to sing about. Well the answer lies in the simultaneous benefits that this gives our clients in: Creating value for their clients – by enabling firms to create repeatable and rules based experiences around clients to address a [...]
Everything between the customer and their money in a fee for service basis means you are being expected to put pressure downstream and you are being evaluated yourself on value add.
How does this impact wholesale service providers ? Increasingly it is becoming clear that the focus for every service provider between investors and their investments has to combine value for the customer combined with how they interact with adjacent players in the eco system. The trend is increasing that the sustainability of every service provider [...]
Are we heading full circle back to broader stockbroking based servicing of private clients?