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Researcher launches FOFA-ready portfolios

Independent research house AltaVista Research has launched a series of strategic asset allocation (SAA) model portfolios that it says will help advisers add value to clients in a post-FOFA environment.

AltaVista is a specialist exchange traded fund (ETF) researcher, and the SAA portfolios invest in Australia-domiciled ETFs at a single, low-cost fixed annual fee.

Rather than tactical allocation models, which would be updated monthly, the SAA models are designed to take more of a “set and forget” approach, revisited around once every six months, AltaVista head of sales and corporate development Michael Turner told ifa.

“When you consider that if you make a change to a portfolio you have to go back to every client, that’s what the strategic asset allocation portfolio aims to do -- set the client on a path,” he added.

While a majority of AltaVista’s clients are advisers in a non-institutional environment, Mr Turner said institutions should also “sit up and realise they have a duty of care”.

“We’ve really stepped back and looked at what else we can do to help any adviser readily and effectively deliver innovation at a substantially lower product and implementation cost for their clients,” he said.

“As our clients tell us, the use of ETFs opens up the prospect of advising to not only more clients and for more client types, but to do so more efficiently.


“They are creating advice businesses that have scale without compromising investment advice or client servicing.”

The portfolios within the new SAA Module aim to provide advisers with low-cost, well-researched and diversified equities and fixed-interest exposures while still offering choice.

AltaVista reiterated the benefits of ETFs in general, including transparency, low cost to the end investor, liquidity, instant portfolio diversification and tax efficiencies.

The first round of SAA portfolios cover Australian equities, global equities and global enhanced income.

AltaVista said additional portfolios incorporating both equities and fixed interest ETFs will be added to the module soon.