Innovative managed portfolios
Re-engineering your advice process with managed portfolios
Managed Portfolio Academy
Are you seeking out a better way to stay competitive and to deliver great customer outcomes? Managed portfolios provide advisers access to professional portfolio management while delivering a scalable, efficient client value proposition in a cost-effective manner.
With technology at their core, HUB24’s innovative managed portfolio solution provide advisers with opportunities to add value for their clients—We call it ‘platform alpha’.
We’ve developed a new Managed Portfolio Academy for practice principals, financial advisers and support staff so you can learn more about how managed portfolios can be used to deliver real client value, and meaningful business efficiencies.
The traditional client portfolio review process
While the evolution of the advice industry has been significant, and technology and consumer needs have continued to create a more transparent, engaging client experience, advisers continue to struggle with growing administration requirements.
Understanding the impact of implementation time lag
Lag times on implementing portfolio changes to reflect your market and investment views can have a detrimental impact on client portfolios. When markets fluctuate, the speed at which changes are implemented can become a critical factor to the success of your clients’ investment portfolios.
Managed portfolios: A new way of doing things
Managed portfolios, through the advancement and development of sophisticated technology, have enabled the advice process to evolve – saving you and your clients’ time. By investing through a managed portfolio, your client’s portfolio will be managed in line with the investment strategy of the portfolio manager.
Portfolio changes and rebalance instructions will be implemented automatically, ensuring your clients’ portfolios are kept up to date, without the need for additional paperwork, ROAs or client signatures, which may save you and your clients’ time and reduce unnecessary delays of implementation.
Different platform providers offer varied degrees of functionality which can allow you to tailor outcomes to best suit your clients’ circumstances. Functionality may allow you to customise portfolio holdings, model and optimise tax outcomes to minimise CGT obligations, and net trades to reduce transaction costs.
Tax optimisation with managed portfolios
Tax obligations arising from rebalancing and changes to the managed portfolio are generally individual and not part of a pooled outcome (excluding any managed fund holdings). With some platforms, you have the ability to model and select tax outcomes in a way that best suits your clients, which may save them money and in turn help them grow more wealth over time by saving and reinvesting what would have otherwise been paid in tax.
HUB24 offers tax optimisation at both an account level (managed portfolios and other separately held assets) as well as the managed portfolio level. You can estimate potential CGT impacts resulting from delaying the timing of switches and transactions (7, 14, 28 & 60 day modelling), and model consequences of various tax treatments (FIFO, Min Gain, Max Gain) to select the most appropriate parcels to be sold.
Managed portfolios, customer value and behavioural finance
How could using managed portfolios impact your clients’ perceived notions of value?
Watch our webinar with State Street’s Global Head of Practice Management Brie Williams to discuss how forecasted growth in managed portfolios is aligned with the latest research and ongoing trends in behavioural finance.
View related research from State Street: “Model Portfolio Solutions and the Client Experience: How Do Advisors Pivot to Achieve Breakthrough Practice Growth?”
An Investor’s Guide to managed portfolios
