SIResearch inks goals-based robo deal

Goals-based investing approaches could help personalise the investment experience for clients.


By Daniel Paperny

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Automated advice firm Ignition Wealth has partnered with research and consultancy firm SIResearch to offer a goals-based investment solution for its users.

Under the partnership, SIResearch, formed in November last year by Association of Goals Based Advice general manager Rebecca Jacques, would provide Ignition Wealth's adviser clients with research insights tailored around a dynamic asset allocation framework that would take into account the predetermined time frames and objectives of its clients.

In an interview with financialobserver, Jacques said goals-based investing approaches could personalise the investment experience for clients by identifying optimal portfolios informed by the different priorities, risk tolerances and time horizons of investors.

She welcomed the collaboration with Ignition Wealth, saying the digital advice provider was looking for a research partner that could provide intelligent insights around goals-based investment.

“The core of what we are trying to deliver is about working with groups that are innovative and really trying to solve what I classify as the trust crisis that has gripped financial services globally,” she said.

She said SIResearch would target small to medium-sized dealer groups and institutions that wanted to deliver goals-based offerings for their clients, providing them with corporate governance assessment, asset allocation and customised investment solutions.

Its overarching aim was overlaying insights around “new and innovative” product categories, such as separately managed accounts and exchange-traded products, to help fill what Jacques said was an “under-researched” void left by the incumbent major institutions.

“Groups like Ignition Wealth are trying to build a collaborative journey for investors and are groups that we like to work with,” she noted.

“We recognise that investors are not just economic individuals, but also individuals with behavioural biases and … the problem with the financial services industry [in Australia] is investors feel that the advice industry and the financial services industry as a whole doesn’t particularly look after their needs and wants.”

SuperEd chief executive Hugh Morrow told financialobserver that digital advice tools can play a significant role in using goals-based investing strategies to help Australians prepare for retirement.

“Digital advisers need to understand that goals-based investing and the advice to achieve those goals should not be a point-in-time transaction,” he said.

“It is part of a continuous journey and people will want to feel they are on track and in control.”

An Ignition Wealth spokeswoman said the industry’s transition towards embracing goals-based investing would increasingly drive the emergence of new retirement income solutions that were “focused on winning for consumers”.

“It will be a massive paradigm shift that will make [these products] more personal and relatable to customers,” the spokeswoman said.

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