JM Asset Management turns to advisers to grow client list

Discretionary funds manager JM Asset Management has embarked on a drive to source its high-net-worth retail clients through financial planners and dealer groups.

The independent boutique had previously sourced individual and entities as clients for its retail individually managed accounts (IMAs) through direct marketing and communication and ‘word of mouth’

The drive will target dealer groups that have previously expressed an interest in developing a relationship with the boutique, and will actively market for clients through that channel.

It will also target particular dealer groups that might have three or four clients large enough to have an IMA run on their behalf, according to chief executive officer Harry Cator.

“You are looking at $500,000 in Australia equities for us to open an account with a client, so it would be all high high-net-worth dealer groups we would go through.

“We could add to our number of clients in that category by going down the financial planner route, although we will continue to directly approach clients.”

He said discrete mandates are “going well from the perspective of managing returns from an after tax basis, but of course any equity product at the moment is subject to market conditions”.

“What’s happening is the technology and the appetite for direct equities are now beginning to merge, and if you do an analysis of the large platforms you will see they now have a direct equity component.

“This has grown over the years due to a combination of people being happier to hold direct equities, and a combination of people moving their personal holdings on to the platforms so they can get consolidated reporting.”