Two formerIWLexecutives, David Wright and David Smythe, have launched a new research consulting business – Zenith Investment Partners – six months after being dismissed by their former employer.
The new business will focus on the provision of model portfolios and customised research to advisers, including research on new and specialist products the fledgling group claims are being poorly covered by the research market.
The universe pool under which the Zenith model will operate consists only of those managers deemed “best of breed” in their respective asset class and thus able to add value to the adviser’s business.
Wright says the new research group will not be another ratings house, as he believes this model has already run its course with fund managers continuing to question the value of paying for ratings.
“The large majority of research houses currently run a service focused on generating fees from fund managers, which moves the focus of their research away from the adviser,” Smythe adds.
“The end result is a crazy situation where adviser needs are not being met meaning fund managers are not getting value for their rating service fee,” he says.
Wright says that the research business will have a narrower focus than its peers, enabling greater customisation, with model portfolios constructed off the investment menus of the major wrap and master trust providers.
He says this will be backed up by up-to-date, comprehensive suite of research reports and proactive investment advice.
Zenith also says that while many in the industry loosely use the term independent, Zenith Investment Partners is 100 per cent staff and partner owned with no fund manager ownership.
Wright and Smythe say that having built the managed funds research division of IWL from a start-up, they know what to expect in their new venture.
“We are relishing the opportunity and challenge of establishing a reputable and successful research business,” Wright says.
