The first in a new range of Managed Portfolios designed for Australian Unity Personal Financial Services (AUPFS) clients have been released and are now available as Separately Managed Accounts (SMA) on the Federation platform. This move coincides with the recent launch of Federation SuperTM and its addition to the AUPFS approved product list.

“The SMA provides advisers with a streamlined way of providing consistent and transparent portfolio construction and rebalancing solutions to their clients,” said Steve Davis, CEO of Australian Unity Personal Financial Services.

AUPFS advisers will have exclusive access to three multi-asset Managed Portfolios, Conservative, Balanced and Growth, with each adopting AUPFS’s proactive asset allocation investment philosophy.

“The Federation platform offers advisers and their clients clear value for money and this, combined with flexible investment choices and the option for clients to become shareholders, makes it a unique offer in the platform market,” continued Mr Davis.

Alan Kenny, CEO of Federation Alliance said that:

“SMAs, coupled with a broad investment universe and multi-currency administration capabilities are fast becoming an essential platform-delivered solution to drive efficiencies in advisers’ practices, reducing their compliance burden and delivering a differentiated customer value proposition.”

“The administrative burden for advisers significantly increased under the FoFA regime, and we believe helping our advisers operate a more efficient practice is now even more important. With a professionally managed portfolio within an SMA, our advisers are able to significantly improve the efficiency of the advice process,” Mr Davis says.

Federation Alliance, through its equity participation option, is uniquely positioned to provide additional potential value for clients who choose to invest in the platform.

“Investors using the platform can elect to become shareholders in Federation Alliance, the company that operates the platform, giving them the right to participate in any future growth and dividends, which could indirectly offset their administration costs,” Mr Kenny says.

“The Federation platform offers our advisers an alternative to the platforms owned by the major banks. We believe there is a place for both institutional and independent platform models – the key for us is to give our advisers and clients the choice,” Mr Davis says.

“This is becoming even more important in a post-FoFA world where advisers need to be even clearer in relation to meeting their obligations under their best interests duty,” he added.

Mr Davis says AUPFS’ primary focus is to help its advisers continue the strong growth they have been experiencing in revenue, FUA and risk insurance business, but that further growth for AUPFS is also on the agenda.

“We expect to continue to grow adviser numbers as well as our network of accountants as referral partners and advisers,” Mr Davis says.

“There is going to be continuing convergence between the accounting and advice professions and we are well placed to help accountants provide high quality financial services to their clients.

“We think that the Federation platform, and its ability to facilitate automated direct equity portfolios, can be a very complementary investment structure for accountants and some of their SMSF clients, who appreciate the transparency and ownership of direct equities, but are less interested in day to day management of the portfolio,” Mr Davis says.

Australian Unity Personal Financial Services currently has 99 planning practices, 179 advisers, 20 mortgage brokers and 33 accountants authorised to provide limited SMSF advice operating in all mainland states and the ACT.

Source: Australian Unity Personal Financial Services (AUPFS)

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