Aberdeen Standard Investments (ASI) has signed two more financial planning firms to its separately managed account (SMA) service, as it continues to rapidly grow its presence in the market.
Queensland-based financial planning licensee Futuro Financial Services and WA-based advice firm Profusion Planning are the latest to have joined ASI’s SMA Service, which manages 18 multi-asset, Australian equities and ETF managed portfolios both privately for specific advice businesses and on public menus.
Con Koromilas, Aberdeen Standard Investments Head of Wholesale Sales said ASI’s SMA service was designed to support the new business models required of advice firms to reduce the cost and complexity in efficiently servicing clients in a consistently compliant manner. The investment solutions embrace goals-based investing to deliver specific outcomes for clients through all market conditions.
“After a decade of structural change, increased regulation and industry reform, many financial planners are finding it difficult to balance an increased compliance burden and still give their entire book of clients the individual attention they deserve”.
“Our separately managed account solutions give time back to advisers so they can service each of their clients the way they want to, with the trust and backing of ASI’s team of over 1000 investment professionals, including 120 multi-asset experts,” Koromilas said.
ASI has provided Australian advice firms with outcome-oriented managed accounts tailored to the goals of their clients since 2017. These SMAs can be used on whichever platform an advice firm nominates, and deliver an end-to-end transparent model with compelling pricing and no reliance on rebates, which is a critical aspect for advice firms.
Aberdeen Standard Investments Australia Managing Director Brett Jollie said the Australian SMA market was a significant growth opportunity for ASI, as research showed strong adviser demand for their use and indicated half the industry could be using them by 2022.
“We’re expecting very strong growth in both the number of SMA portfolios we offer and our SMA funds under management because of our ability to provide wholesale advice firms with institutional-grade resources, risk management frameworks, and capabilities at institutional prices,” he said.
Profusion Planning Director Brad Dudumas said the Perth-based firm had already realised the benefits of ASI’s SMA solutions.
Dudumas said “The implementation of ASI’s goal-based models enables closer alignment to our client’s individual objectives as well as greater flexibility when managing downside investment risk. In addition, we have been able to strip back cost for our clients which was a key focus for us.”
Paul Kelly, Managing Director of the group that owns Futuro Financial Services and Insight Investment Services said “partnering with ASI to deliver bespoke SMA solutions will make recent and future periods of market instability far more manageable for our member firms and independent financial adviser partners.”