Clients happy to pay for IMA solution


By Kristen Crawford

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Individually managed accounts (IMA) provided an avenue for delivering more personalised solutions in a highly scalable way that financial planning clients were happy to pay for, according to MyPlanner.

“We all know that pricing models are under attack, and so they should be if there is little or no value to be added,” MyPlanner managing director Philippa Sheehan told financialobserver.

“If you’re charging 100 basis points for an index fund that does not cater to the client’s individual needs, that is not okay.

“MyPlanner is charging 50 basis points for a complete customised [IMA] solution for a client and they are very happy to pay that.”

Because MyPlanner had provided a “reasonably priced” and “engaged solution”, it had not come across any pricing issues since launching its IMA solution in recent months, Sheehan said.

“Clients are happy to pay for an engaged solution where they feel they have input,” she said.

“I’ve always been very focused on delivering outcome-based financial planning and I thought that as a planner and an educator, I was very good at teaching planners how to set goals and objectives with clients and help them find the strategies to achieve their goals and objectives.

“But what I didn’t do so well was customise their individual portfolios and the reason I wasn’t good at that was that it was difficult to find a scalable solution.”

From there, she said she knew she had to develop something that was individualised and customised, and hence when IMAs hit the market, she became very interested in the space.

Further, she said when IMAs became available they enabled MyPlanner to deliver goals-based advice in a way the client wanted to be engaged.

“IMAs enable us to engage clients in what they want from risk profiling, to whether they wanted active verses passive investments, and considering all of their preferences from holding stocks to timing of the market and type of investment,” she said.

“We decided to find someone who had that IMA solution and we found that through Implemented Portfolios.

“The reason why that was so important for us was [that] to be able to have a consistent approach whilst being able to personalise that for the client, I needed a really good technology piece behind that so we could run a scalable financial solution.”

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