Arrow will use Nucleus’ Wealth Fusion platform to “build relationships with clients from the beginning of their nest egg building journey”. Arrow Fusion digital advice platform portfolios will be actively managed and have more than 30 ESG filter choices, creating what Arrow believes is the most comprehensive and sophisticated robo service in the Australian market.
“Arrow has been looking to provide a digital offering to our clients for a while now, as we are seeing increasingly fewer options for low balance clients to get advice, and consumers wanting more and more to interact with companies digitally,” said Arrow Financial Advice chief executive Michael Voss.
The platform will allow Arrow to offer clients dynamic risk management and stock selection, an onboarding experience that provides personal investment advice and ID verification, the tax benefits of a separately managed account, and investments through personal, joint, company, trust, super and SMSF accounts.
“Nucleus Wealth has an outstanding investment pedigree headed by Damien Klassen,” Mr Voss said.
“His team has more than 50 years’ industry experience and were one of the few Australian wealth managers to predict the COVID correction and, importantly, to act on it. This, combined with the fact that ethical investing is one of the strongest investment trends globally, makes us delighted and proud to be partnering with Nucleus Wealth to bring our clients this offering.”
Nucleus Wealth believes the best outcome for consumers is when digital and full-service advice work together and said its filters will meet rising demand for ethical investments and the “increasing disparity in ethical beliefs”.
“Offering individual filters for each ethical consideration is important because our research shows that reducing an investment universe by more than 5 per cent begins to exponentially affect performance,” said Nucleus Wealth CEO Damien Klassen.
Is this really advice though?
It’s a good question Alan. Our method is to triage the advice needs in an understandable, concise manner. The system has the ability to provide limited personal investment advice online, but makes clear the limitations and ensures if broader advice is required then the opportunity is sent to the advice practice to act upon.
No. It is online product flogging. Like all “roboadvice”.
No……Anon! This service allows investors to choice their own ethical flitters, risk profile and time frame depending on their financial goals and objectives. It is self tailored to the clients preferences. The underlying investments are through ETF’s which track an index at a low cost so you are not paying an investment management fee that may or may not beat the index. Most don’t. This is a self service solution for clients seeking low touch, low balance, low cost alternative to paying for advice. Thank you Anon for the opportunity to reply to your comment.
As you say, it’s an alternative to advice. It’s not advice. It is a platform product which the issuers make money from, regardless of the underlying components of that platform. Just like AMP’s North and BT’s Panorama. And it is promoted online. Hence… online product flogging.
Sorry, Anon….let me explain the service in further detail. The online Application askes the investor a number of relevant personal questions that reflects the clients investment goals
and objectives and ethical flitters to determine which portfolio is suitable for them to invest in. It is not a ‘one size fits all’ Application or investment Portfolio. This is an alternative to ‘face to face’ advice. It is online advice. It does not have a predetermined investment outcome. Whereas if you invest in a platform, like AMP’s North or BT’s Panorama, there is no investment portfolio that is recommended. Importantly, they do not recommend a suitable investment Portfolio because they are not licensed to give advice nor do they meet the ‘know the client’ rule. Whereas, this online advice, meets those basic requirements of the advice process, albeit, recorded via the client questionnaire. The client only invests in a recommended Portfolio, once they have agreed to the terms and conditions of the answers they have given. The client does not pay for the question and answer process. They only pay, on an on-going basis, on the funds that are invested. The client is always offered the opportunity to seek personal ‘face to face’ advice, if they wish. Obviously, that is another service with another cost structure. This is not a product as no one has the same objectives / goals or ethical flitters or receives the same outcome. I trust Anon this clears up any confusion as to what is being offered here. Again, thank you Anon for providing the opportunity to explain the service in more detail.