SMAs on platforms a 'quantum leap forward' from managed funds
The consolidation of separately managed accounts (SMAs) into platforms represents a “quantum leap forward from conventional managed funds”, according to Aviva Australia research manager Sue Voglis.
She added that advisers would also embrace SMAs on platforms as a quantum leap forward, in the “same way as has occurred with exchange-traded funds (ETFs)”.
Speaking at yesterday’s announcement by Aviva of five inaugural investment managers for its new Navigator SMA facility, she said ETFs were “virtually unknown” to advisers two years ago.
“Compare and contrast that to where we are today, where ETFs have been listed, placed on portfolios, and where advisers are now fully aware of the benefits ETFs can deliver for client portfolios.
“In the same way we believe advisers are ready to embrace SMAs on platforms as easy to access.”
She said the new SMA facility features broadly reflected positive adviser feedback to Aviva research, suggesting the group had to deliver a facility with a multi-dimensional value proposition.
“They also suggested we had to ensure there was a cost differentiator between SMAs and conventional managed funds, and as part of that we have got the minimum trade down to $5.
“We have also ensured we had a flexible compensation for advisers, the support of the research houses, and really importantly, that we have appointed brand-name model managers.”
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
