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Helping your clients succeed with equities

Shares are at the top of many clients’ wish lists, with Australian equities the most widely held asset class, owned by 58% of investors1. While demand is high, it can be difficult for clients to set themselves up for success. So they look to you as their trusted adviser for guidance.

But being across a whole universe of Australian equities can be tough. So it’s important to find the right equity trading solution.

A managed portfolio can be an efficient way of holding Australian equities that clients recognise, and are managed by experts.

Helping advisers stand out from the crowd

In an environment where the cost of providing advice is increasing, it’s never been more important to find solutions which not only help you deliver great advice, but also run your practice more efficiently.

Many advisers are finding the reporting, transaction and portfolio management capabilities of managed portfolios can make it easier to deliver high quality advice that meets clients’ goals. And their popularity continues to grow, with 44% of advisers now using managed portfolios,2 which account for over 10% of platform investments.3

Managed portfolios can benefit your practice by:

  • reducing operational risk as a specialised trading team takes care of rebalancing, trading and monitoring.
  • making it simpler to deliver advice by reducing the number of steps, with the investment manager taking responsibility for investment research and portfolio construction and the North team taking responsibility for implementation.
  • freeing up your time to focus on your role as mentor, spending more time educating clients about investment goals and strategies.
  • meeting client expectations with clear investment objectives allowing you to align the chosen portfolio with your client’s values to meet their broader needs.
  • leveraging experts to help clients achieve their goals, including investment managers and specialised trading teams. 
  • building whole-of-wealth solutions based on broad client goals such as retirement income, asset protection or maximising accumulation.
  • meeting Best Interests Duty obligations by aligning the recommended managed portfolio with your clients’ investment objectives, financial situation and needs in areas such as risk tolerance and investment timeframe—in fact, more than nine out of ten advisers say it’s easy to show they’re meeting their clients’ best interests with managed portfolios2.

Managed portfolios are transparent, with underlying investments fully disclosed and regular communication around performance. They are cost efficient – for example, MyNorth Managed Portfolios use scale to negotiate discounts so clients can access funds at a cheaper rate than if they had invested outside the managed portfolio. And they can be tax efficient, as clients are the beneficial owners of underlying investments. In managed portfolios with equities, clients aren’t disadvantaged by decisions of other investors which may trigger tax liabilities, as they may have been in a unitised investment such as a managed fund.

Trading equities on North

We’ve expanded our MyNorth Managed Portfolio range with 23 new equities and listed products managed portfolios from 10 high quality investment managers, diversified across styles and strategies and covering small, mid and large caps, income, property and infrastructure, ESG and ETFs.

And our existing range of diversified portfolios includes MyNorth’s IndexPlus and Sustainable Managed Portfolios, which have recently received a superior 4 out of 5 rating from SQM Research.

Transforming your advice

Most advisers say their value proposition has changed as a result of adopting managed portfolios (71%), citing benefits such as:

  • greater focus on client financial and lifestyle goals (39%)
  • greater transparency (38%)
  • outsourcing portfolio construction to professionals (36%)2.

As we’ve seen during the COVID-19 crisis and the subsequent ongoing instability, managed portfolios can help during market volatility. Most advisers rated managed portfolios as ‘very good’ (55%) or ‘good’ (33%) in terms of freeing up their time to spend educating and reassuring clients2. This is good news for any future market disruption, and it’s a narrative you can leverage to demonstrate your value-add to clients.

To find out more about MyNorth Managed Portfolios visit northonline.com.au/emp.

 

1 ASX Australian Investor Study 2020

2 Investment Trends February 2021 Managed Accounts Report

3 IMAP Dec 2020 data and Plan for Life Dec 2020 

 

NMMT Limited ABN 42 058 835 573, AFSL 234653 (NMMT). This article contains general advice only and doesn’t consider a person’s personal circumstances. A person should consider whether this information is appropriate for them and consider the PDS and TMD available from northonline.com.au or by contacting 1800 667 841, before deciding what’s right for them. The issuer of MyNorth Managed Portfolios is NMMT.  You can read the Financial Services Guide online for more information, including the fees and benefits that NMMT, related companies and their representatives may receive in relation to products and services provided.

The rating contained in this article is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.

 

Helping your clients succeed with equities
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