The past five years has seen great change in advice due to increasing compliance rigour, the departure of major players from the market and the cost of delivery increasing. In response, advice businesses have sought to become more efficient and increase their own client intimacy.
From an investment perspective, many firms looked to adopt managed accounts and made partnership decisions at the beginning of this cycle. With the market continuing to evolve, it’s essential to ask: are your investment solutions and partnerships still fit for your business and the needs of your clients?
Managed accounts have become the mainstay in wealth management with over 50%[1] of advisers using managed accounts in their client portfolios. Many practices have seen the benefits that come from implementing managed accounts but as client investment preferences have evolved and become more complex, advisers have started to flock in droves to more sophisticated, tailored managed account solutions.
Whilst surveying the investment landscape for these more bespoke solutions, advisers have turned to investment consultants to help them create tailored solutions with their unique clients in mind.
And just as there are many different types of advice practices, there are many different types of investment consultants – from small consultancies running standard model portfolios to larger multinational companies, guided by inhouse models with limited personalisation, And then of course, there are the “inbetweeners” – consultants with boutique offers but institutional grade capability, offering truly bespoke and tailored solutions. This is where Lonsec stands out from the crowd.
Today’s modern investment consultant
Long gone are the days when a one size fits all Investment consulting approach was sufficient to service the needs of an advisers client base. What advice practices now require from their investment consultants has broadened to include multi-channel and tailored client communications, an understanding of the changing nature of advice in Australia, access to a wide breadth and depth of fund manager research and a proactive approach to bring fresh ideas and new investment strategies. In essence a true investment partner that will adapt and grow with the evolving needs of a changing advice business and build a solution with advisers, not for them.
This is where we believe we can help.
The Lonsec approach to tailored managed accounts is one that is truly collaborative, working alongside you to co-design a unique investment experience for your clients, that appoints you as co-pilot, solves incumbency and provides you with the option to retain your brand. Our goal is to give you greater confidence in your investment process, from the asset allocation decision right through to security selection and investment committee governance.
The Lonsec Tailored Solutions team has access to in-depth research on a vast array of funds and strategies, ranging from equity funds and LIT/LICS to direct equities research in the ASX200, all provided by Australia’s largest research and ratings house – Lonsec Research. The Lonsec Tailored Solutions team regularly meet with fund managers on new strategies and approaches, and we proactively raise these with your investment committee.
Underpinning our approach is our Dynamic Asset Allocation process with a weekly meeting that interrogates current and forthcoming data so that we can bring you real-time market analysis and insights and provide the security that comes with ongoing analysis.
So if you are assessing your current consulting needs, there are some things to think about-
- Does your investment approach align with the DNA of your investment aspirations?
- Does your investment approach free up your time, allowing you to spend more time with more clients?
- Does your investment approach provide a personalised yet consistent investment experience for your clients?
- Does your investment approach provide you with opportunities to grow into new client segments?
- Does your Investment Consultant have the scale to truly deliver a bespoke solution for your business – can they continue to invest in people and technology so as to constantly evolve their partnership with you, in line with the changing needs of your clients?
If not, it may be time to have a conversation with Lonsec Tailored Solutions.
[1] SPDR ETFs/Investment Trends 2024 Managed Accounts Report
Important Notice: This document is published by Lonsec Investment Solutions Pty Ltd (LIS) ACN: 608 837 583, a corporate authorised representative (CAR number: 1236821) of Lonsec Research Pty Ltd ABN: 11 151 658 561 AFSL: 421 445 (Lonsec Research). LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN: 151 235 406. LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but has not had any involvement in the investment research process for Lonsec Research. Please read the following before making any investment decision about any financial product mentioned in this document.
Disclosure at the date of publication: Lonsec Research receives a fee from the relevant fund managers or product issuers for researching financial products (using objective criteria) which may be referred to in this document. Lonsec Research may also receive a fee from the fund manager or product issuer (s) for subscribing to research content and other Lonsec Research services. LIS receives fees for providing investment consulting advice, approved product lists, model portfolios to financial services professionals and other advice to clients. LIS’ and Lonsec Research’s fees are not linked to the financial product rating(s) outcome or the inclusion of the financial product(s) in model portfolios. LIS, Lonsec Research and/or their associates may hold any financial product(s) referred to in this document, but details of these holdings are not known to the analyst(s).
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