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Financial Simplicity

Beyond Personalised Direct Indexing to Hyper-Personalised Investment Management

With the growth of personalised direct indexing solutions in the US market, combined with various innovations in areas like fractional ownership, we are well on the path to what many as seeing the end game for the area of the market that are seeking more customised, tailored investment solutions. This has to be the nirvana for the high end of the market that are seeking a blending of so many innovations to bring the ultimate ‘fit like a glove’ experience. This end game combines the innovations of:

  • making use of listed and unlisted assets, in any currency
  • using fractional ownership structures to avoid layers of product administration and custody
  • making use of defined investment strategies, whether they be indexes or house asset allocations / model portfolios
  • personalising those investment strategies to each individual investor with ‘screens’ and ’tilts’
  • extending tax considerations from just getting post trade best outcome, adding tax harvesting to a world I call ‘tax smart’ portfolios, where it consider current tax positions of portfolios at every decision point, not just post trade or end of year
  • using whole of client centric investment management control systems to monitor and support decision making across large volumes of portfolios quickly and easily, according to the schedules that suits each investor

What we see is innovation that ultimately is heading in this direction, and with Financial Simplicity’s portfolio control systems, combined with a new era of fractional ownership platforms this is all possible now. One could even argue that every generation of investment proposition is really just a subset of the Hyper-personalised end game, just turning a range of levers and options off to suit the cohorts that are assigned to each specific investment proposition and target market.

Imagine what you could should you be able to offer hyper-personalised investment propositions at scale today ? Consider the client experience improvement that can help you compete in the market, consider the business efficiencies, consider the reduced workload from constant compliance as opposed to reactive compliance ?

After all, we are one, but we are not the same…

Stuart Holdsworth

Author Stuart Holdsworth

Stuart has over 30 years of experience in the use of technology for the strategic competitive advantage of businesses in the financial markets and investment industry.

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