In 2022, the most successful financial planning businesses operate a model focused on client-centric holistic strategic advice, rather than investment management, as their key service offering.
The 'Value of Time' report by the technology and investment business, SEI, described a remarkably significant difference. Those businesses that focus on holistic strategic advice:
The data is compelling.
The critical insight is that the greatest return on time and cost investment comes from focusing on the client and providing holistic strategic advice. Conversely, that investment management at an individual client level does not return the same value financially. Moreover, the time occupied by investment management distracts advisers from working with and winning new client business.
So, strategic advice is key to creating valuable client relationships and business value. But what about portfolio management?
Outsourced portfolio management is the essential ingredient of the high-value business model. Placing portfolio management in the hands of specialists is to delegate portfolio management to those that derive value from scale and can therefore resource it appropriately. It takes a similar amount of effort to manage $1 million as it does $100 million.
The benefits for advisers in outsourcing portfolio management are:
In short, you use the right tool for the right job and, in the process, save time, lower resource costs and simplify your business.
Now let's step back for a moment and consider the ideal solution. Suppose you were to choose to work with a professional portfolio management team. What would it look like?
A solution like this would revolutionise the adviser-client engagement by remaining firmly focused on what the client wants and the strategic advice the adviser provides.
Finding the right team to work with
Advisers will be pleased to know that this solution is available today. The Dynamic Asset managed account solution delivers all of these benefits. It enables advisers to realise the advantages of focusing their business on holistic strategic advice without doing all the research, portfolio management, and implementation services that don't add as much value to your business.
Dynamic Asset provides a range of five actively managed client-focused portfolios administered through managed accounts, either SMA's or MDA's, across both wealth and super. This offers the full suite of portfolios you need to meet all your client's needs. Advisers can use our unique Portfolio Construction Tool to allocate portfolios to match the client's needs through the well-understood 'Bucket Approach', helping satisfy the Client's Best Interest obligations of advisers. The portfolios are currently available on leading platforms such as Hub24, Allan Gray and Mason Stevens.
Learn more about the Dynamic Asset approach to investment and Contact us today to learn more about Dynamic Asset and how they can help you achieve your business goals.
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Contact us to learn more about how the Dynamic Asset approach to active portfolio management can support you and your team build a thriving advice business.