Advisor groups typically gain significant business efficiencies and improve the outcomes for their clients by partnering with a trusted investment specialist.
Here we demonstrate the significant value created by one group that was seeking to free up time, incorporate more robust investment practices and differentiate themselves from competitors.
The result was a doubling of fees for clients with investable funds of $200,000 or more and a substantial reduction in time spent managing client assets. Time spent on investment research and portfolio construction both fell by around 80%. Time spent monitoring investments fell almost 30%. The firm and their clients found the transition easy as well.
CS Wealth Advisors (CSWA) is a Sydney-based accounting and wealth advisory practice. Its network of qualified professionals offers specialised accounting, taxation, financial planning and business support services. The firm has over 20 staff including franchisees and has been operating for more than 14 years.
Most of the investment decisions were being carried out by the firm’s principal, Kim. He felt increasingly overextended as the mounting investment work increasingly drained his limited time. Kim felt ever more burdened by the responsibility of delivering the quality investment returns the firm wanted to provide for their growing client base. Asked what would have happened if the firm had not found a solution, Kim said “I would not have any life and I would have let down my other responsibilities to the firm”
The investment program the firm had in place was not optimal in any case. Clients wanted transparency with their investments which they did not get with the managed funds the firm was using. In Kim’s words, “managed funds had created more problems than they solved”. Older age clients in particular wanted a portfolio they could identify with.
Asked what would have happened if the firm had not found a solution, [principal] Kim said “I would not have any life and I would have let down my other responsibilities to the firm”
CSWA saw the appeal of direct security holdings for their clients but the research and myriad of other work associated with managing direct security portfolios was not feasible. The firm’s investment performance had been quite good but the process was not sustainable and the quality and timeliness of their research was falling behind.
CSWA was well aware the industry was changing. To extend their business success, they were searching for ways to differentiate themselves from other wealth managers and financial planners.
Seeking an investment partner became a priority. In particular, CSWA sought an investment specialist that had a sound investment philosophy and process that reliably delivered results, allowed flexibility in the portfolio construction process, offered personal access to investment experts and provided research and other material that helped recruit and inform clients.
How AssureInvest Helped
Partnering with AssureInvest allowed CSWA to boost significantly the efficiency of their business. The research and administrative burden is substantially reduced now that much of the work was being carried out by the investment specialist.
The problem of the heavy reliance on the practice principal for investment decisions has been resolved. Instead, more time is freed up for oversight, managing internal resources and growing the customer base.
Revenues have grown through price rises as the firm is able to offer a more reliable and transparent investment approach which offered greater value to clients.
CSWA now has a competitive edge over rivals. It can offer a better risk return than other wealth advisors. CSWA staff have greater confidence when they are advising clients that they have the best offering. They have ultimate flexibility to alter portfolios to suit each of their clients’ specific needs.
In Kim’s words, “I have reviewed a lot of traders, researchers and asset managers in my prior roles in London as head of risk management at global investment banks and a $50 million hedge fund, as well as my 14 years at CSWA in Australia. I have not seen anyone that comes close to the AssureInvest team in terms of servicing the vast majority of Australians’ needs to save for retirement. They understand the high priority that risk is for most investors. They have a depth of experience and application that is highly effective and rare.”
“I have not seen anyone that comes close to the AssureInvest team in terms of servicing the vast majority of Australians’ needs to save for retirement”
Transitioning to AssureInvest was achieved with almost no business interruption. Clients were transitioned to the appropriate AssureInvest portfolio with ease. Positive feedback continues to be received from their clients.
CSWA is very satisfied with their outsourced investment solution. Here we discuss the results.
- Increased pricing power: The shift away from managed funds along with the more trustworthy investment process and lower product costs have resulted in higher fees for CSWA, doubling in the case of investors with funds of $200,000 or more.
- Saving of investment resources: Time spent on investment research and portfolio construction both fell by around 80%. Time spent monitoring investments fell almost 30%. Time researching markets and investment selections has dropped to 1-2 hours per week from over 8 hours per week. Portfolio construction now takes 1-2 hours compared to 5-8 hours previously. Portfolio monitoring is now only 5-8 hours, down from over 8 hours.
CHART 1: HOURS PER WEEK SAVED BY INVESTMENT OUTSOURCING
- Business efficiency: Partnering with AssureInvest has allowed the firm to grow more efficiently. There is a more consistent investment management process and greater investment knowledge and competence within the firm. Research personnel costs are better contained. CSWA has been positively impacted by AssureInvest’s in-depth analysis reports, performance reporting, strong client service, reduced product fees and more time to focus on the business.
- Better client outcomes: There are better investment results for clients. Client portfolios are better diversified and the firm is better placed to take opportunities to tactically shift portfolio weights. CSWA is comforted by institutional-level due diligence and superior tax management for clients.
Partnering with AssureInvest has allowed the firm to grow more efficiently and there are better investment results for clients
Let us demonstrate how we can deliver outstanding outcomes for your business
Contact us at email@example.com or call +61 2 8094 8410 to arrange a complimentary consultation.
Let us demonstrate how we can deliver outstanding outcomes for you.
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AssureInvest is your trusted professional investment partner. We offer a holistic and successful investment approach and carefully tailored solutions for individual needs, as well as cost saving innovations, integrity at the highest level and attentive customer service.
Our advisor clients are empowered to boost their profits and deliver better investment outcomes, benefiting their clients and the broader community.
Our disciplined and long term focus provides a critical framework for assessing new value-adding opportunities, preserving capital, generating superior returns and implementing at low cost.
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