NEO Financial Solutions has appointed Ibbotson Associates Australia as its implemented investment consultant.

Ibbotson will be providing a range of retail investment consulting and advice capabilities, including approved product list and model portfolio construction, governance oversight, fund and equity research, and practice management support.

The contract marks Ibbotson's first foray into the retail sector and the firm hopes to sign up more clients later in the year.

"We're speaking with other mid-tier, non-aligned dealer groups," Matthew Esler, head of adviser services for Ibbotson Associates Australia, said.

Ibbotson is targeting dealer groups with 30 to 300 advisers and funds under advice (FUA) of between $1 billion and $10 billion.

"We offer a high-touch service in which we really partner with a dealer group, so we will probably have a maximum of about 10 dealer groups that we can service," Esler said.

NEO Financial Solutions was established by former AFG Financial Planning state manger Mark Edman and national dealership manager Mark Woods in January 2011. It has more than $600 million in FUA and about 50 financial planners.

"Given the new Future of Financial Advice (FOFA) regime changes, it will be the dealer groups that focus on enhancing practice development and efficiency that will flourish," said Edman, who is NEO's managing director.

"We're confident that Ibbotson will help us establish a differentiated and customised investment offering based on its strong foundations in academic research, asset allocation, and portfolio construction services," he said.

Ibbotson is owned by Morningstar Australasia, which also publishes InvestorDaily.