From left: Simon Hoyle, Richard Rauch, Mark Minchin, Angela Ashton

Taking financial research and investment in-house can lead to better investment outcomes for clients and increased efficiencies and cost savings for advice firms, a panel has discussed.

Speaking at the Professional Planner Advice Practitioner Summit earlier this month, Minchin Moore Private Wealth managing partner Mark Minchin noted that is, however, a multifaceted process with no “best” way of doing it.

“There are key things around asset allocation and tactical versus strategic approaches,” Minchin said.

He added that his firm took an academic approach to building its own internal investment team.

“I put a lot of effort into picking the right stocks, picking the right managers, and implementing the right tactical asset allocation,” Minchin said.

As an adviser, Minchin wanted his advice to be consistently right and wanted to build a framework that would educate clients, which is why he found several benefits of having an internal investment team.

“We have 24 advisers who don’t have to press buttons on portfolios; that’s all done centrally,” Minchin said.

He added that profound efficiencies come from bringing a person with certain skill sets into a dedicated investment team that runs the portfolio.

“They can leverage technology and can get through more portfolio reviews and rebalances in a day than an adviser ever could.”

Resurgence in demand for independent research

There has recently been a resurgence in demand for independent research.

Evergreen Consultants director and founder Angela Ashton said there has been a resurgence in independent research linked to the big banks withdrawing from advice.

The banks were part of the ‘big six’ group of licencees, which included AMP and Insignia – who are, of course, still offering advice. “They just were not funded properly,” she said.

Because of this, Evergreen began partnering with financial advisers to build multi-asset managed accounts on various platforms. They also started offering their own managed accounts on major platforms.