Ibbotson pushes into retail with managed portfolio offering
Ibbotson will expand its presence into the retail financial advisory space as it seeks to sign more financial planning groups to its implemented model portfolios offering.
The offering will use a managed account structure, with Ibbotson offering access to direct shares, exchange-traded funds and managed funds drawn from its institutional investment analysis teams.
Ibbotson head of distribution Matt Esler said that while the structure was similar to both a model portfolio and a separately managed account (SMA), it was being referred to as a managed account portfolio to distance the offering from both of those.
He said this was because the managed account portfolios would be offered through platforms. Each one would be built along particular risk profiles so that each portfolio was bespoke to each adviser group.
“Portfolios can be adapted at the practice level and offer investments not normally available to retail clients to a range of planning clients, including those with relatively low balances,” Esler said.
“Investments will not be tied to a mandate and so planners and clients will have a blank canvas on where they wish to invest, which will be populated by a risk/return profile teamed with an absolute return overlay.”
Esler said the scope of offerings and the matching to a client’s risk profile meant that advisers could build a complete client investment portfolio through the managed account portfolio and operate it via a platform, which would provide the necessary legal, compliance and reporting tools to manage the account.
Esler said the group had signed two large advisory groups and was in the process of signing more, but was currently restricted in publicly stating who had signed up.
“Licensees are approaching us as they gear up for the Future of Financial Advice changes and to offer scaled advice within their business,” Esler said.
Ibbotson signed its first retail client to the service early last year, and has also signed a deal to provide investment management, advice and consulting services to four Netwealth funds.
The group’s main business has been around asset consulting and implementing model portfolios for institutional clients, but it has moved into the retail space since the appointment of Esler in late 2011.
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