“Advisers can now select the best solution for their practice, whether using our research to construct their own portfolios or investing in our best ideas pre-packaged for them – all while offering full transparency to their clients."
On Monday, the wealth management group announced an agreement with Morningstar, Zenith and Lonsec which will provide advisers with access to managed account portfolios at no additional cost.
Twenty-three managed accounts will be accessible via CFS’ FirstChoice personal super and pension platforms including Lonsec Active, Morningstar Core, Morningstar Active and Zenith Active.
CFS chief distribution officer Bryce Quirk said the company is “thrilled” to be working with the research consultants.
“Through our new arrangements, we’re packaging up the best investment insights while at the same time helping clients save on fees paid for accessing the managed account structure and professional portfolio management, typically between 10-to-30 basis points per annum,” Mr Quirk said.
“Advisers also save valuable time and effort implementing and administering portfolio changes, allowing them to spend more time on working with clients to meet their goals.”
Mr Quirk said the implementation of the FirstChoice managed accounts specialist portfolios comes on the back of a 2020 report from Investment Trends which found that Australians seeking financial advice rose from 1.3 million in 2015 to 2.6 million last year.
“COVID-19 has been a wake-up call for many Australians who have taken time during lockdowns to reassess their financial situation,” he said.
“We are focused on finding ways to help advisers come up with more streamlined, more cost-effective solutions that keep the cost of investing as low as possible so that more people can access advice.”
Morningstar director of manager selection services Aman Ramrakha added that the new offering reflects the advice sector’s shift to efficient investment solutions, having received feedback from advisers that they want “easier ways” to invest client funds.
“Advisers today have to be relentlessly efficient to thrive and this new agreement is a major efficiency gain for the market,” Mr Ramrakha said.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
