WealthO2 challenges “cookie-cutter” model

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MEDIA RELEASE: Managed accounts under discretion, including SMAs, have been seen by ASIC and others as potential enablers of simplistic cookie cutter advice and not tailored to the client or the market conditions. Responding to the adviser need for higher levels of customisation, adviser platform alternative WealthO2 has launched a new rebalance functionality.

WealthO2 managing director, Shannon Bernasconi, says the new rebalance has been launched alongside the existing rebalancing functionality.

“WealthO2’s portfolio construction already allows for client constraints and model or strategy allocation tailoring. This new rebalance expands on that scalable tailored functionality and provides  further flexibility in the execution for market or client best interest purposes. 

ASIC’s investigation into managed accounts sector included conflicts of interest and the balance between providing cost effective advice and ensuring it is still meeting the individual needs of the client.  

“The new rebalance tool provides even more efficiency when managing complex high net worth client portfolios, and also provides the tools to better execute on the investment advice while ensuring the resulting asset allocation of the client – and their risk profile – is maintained.” 

Ms Bernasconi says now more than ever, diversification, risk management and agility play a key role in protecting against the financial erosion of clients’ investments. 

“The new rebalance allows for much higher levels of customisation, whether it be to time the execution of a specific asset class only, or to execute on a specific model within the client’s overall model portfolio. 

“It allows for dynamic calculations based on the user’s selection or deselection of trades, and adjustments to them. This dynamic calculation allows the adviser to see not only the impact on cash and liquidity, but also the resulting asset allocation or model percentage of the total portfolio. Additionally, it allows for trading transactions to be undertaken in dollar or units, or as a percentage of the total portfolio. 

The new rebalance functionality is the first to be launched under WealthO2’s new application user interface. A rollout of further dashboards and new functions and features is being delivered during 2020, making it even easier to access the benefits of the adviser platform alternative. 

It follows the recent launch of the WealthO2 Academy, which supports adviser education on the new features and provides CPD points for the training.