Finance must follow the lead of technology companies, integrating services into a single ecosystem. Netwealth’s Matt Heine discusses the centralisation of financial services.
Have you done anything this week within your business (or at home) to improve a task that you work on every day or every week? Is there something about that task that allows you to complete it in less time? Could you spend an extra five minutes working on it to create an outcome that is more valuable than what you currently produce?
As I caught the train into the city a few weekends ago and walked through Flinders Street Station I was repeatedly struck by the diversity of the passengers around me and how, whilst we were all largely anonymous, we were easily identifiable with particular groups, clusters or “tribes” that were unique in their own way.
Managed Accounts are not new, they have existed in the US for many decades and have been spoken about and offered in various guises in Australia for the better part of 10 years.
The financial services industry has never experienced such rapid and extensive legislative, regulatory and market changes than those that have been thrust upon it over the past few years and which have resulted in the multitude of challenges being experienced by financial advisers today.
There is no doubt that traditional industries are being disrupted every day by new business models and technologies that are empowering consumers like never before.
While there is certainly an emerging preference of Australian equities over pooled funds, I have noticed a significant increase in the amount of interest from advisers and investors seeking to access overseas markets directly. And despite popular opinion, it’s not just to buy big brands such as Apple, Google or Nike.
When evaluating a new fund or investment we fundamentally want to understand what to expect and how the investment will behave. We want to know if the investment will meet our client’s objectives and whether we agree with the basis on which money is allocated and invested. Once we have invested we will then use this information to ensure that the manager delivers on their promise and stays true to label.
With ASIC reviewing the current requirements for MDAs, many licensees are adopting a ‘wait and see’ approach, writes Matt Heine, Executive Director, netwealth.
Picking the right managers and funds can be challenging. However, spending the time to look beyond fund managers’ slick sales pitches and impressive marketing campaigns to really understand a manager and their business can avoid major disasters and create rewarding long-term partnerships.
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