Asset gathering an opportunity for advisers

01-Jul-2014

By Krystine Lumanta

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More financial advisers are considering whether to become asset gatherers and implement a strategy where the investment management is outsourced as they search for business efficiencies.

Implemented Portfolios practice development manager Katie Gill said over the recent months, the business had spoken to many advisers about the asset gatherer versus asset manager issue.

“What we’re seeing is that it’s not a realisation that advisers wake up with one day, that they need to go from being a manager to a gatherer, but it’s a process they go through to figure out a better way to run their business and find efficiencies if they want to grow and be a leading business,” Gill told financialobserver.

“They’re educating themselves around the different ways of doing it and I think in time more will get around to the idea of the asset manager versus asset gatherer.

“We have had a few conversations spanning over six or nine months and a few advisers have signed up [to our service] because they’re looking at how they can work with outsource managers, and not just ourselves, but outsourcing other areas of their business as well, whether it be marketing or administration. We’re seeing the trend increasing.”

Rather than regulations deterring industry take-up of outsourcing investment management, the issue was whether advice businesses regarded it as a priority, she said.

“I think the more prevalent issue we see with advisers embracing outsourcing is that they have a good understanding of what they want to be spending their time on, so regulations or not, it’s about where they are best adding value to their business,” she said.

“Generally, the practices that work with and use us as a business solution tend to see the Future of Financial Advice reforms as a good thing, rather than a hindrance.

“It’s more a clarification of where they want their staff to be spending their time within the business.”

There was also a compliance issue, she said.

“If you look at a planning business that describes itself as an investment manager, often each adviser within the business is implementing different things for their clients and all hold different views on the market,” she said.

“So from a business owner’s point of view that can be quite a risk.

“It’s much more secure if they have a practice view and know exactly what advice and disclosures are going out to clients.”

Implemented Portfolios was currently putting together its next United States study tour in September, where advisers would meet with a number of firms, she said.

“We’re offering it as part of an opportunity for them to think about the idea of outsourcing, to get exposure to the market over there and see what’s happening,” she said.

“The more awareness and education of what’s happening in other markets, the better it is for the local market, so we’re pleased to facilitate it.”

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