1 year ago

Blue Chip Issue 80

  • Text
  • Fintech
  • Technology
  • Dfm
  • Equity
  • Management
  • Schroders
  • Advisers
  • Planning
  • Financialservices
  • Momentum
  • Asset
  • Wealth
  • Investing
  • Portfolio
  • Global
  • Advisors
  • Infrastructure
  • Funds
  • Retirement
Blue Chip is a quarterly journal for the financial planning industry and is the official publication of the Financial Planning Institute of Southern Africa NPC (FPI), effective from the January 2020 edition. Blue Chip publishes contributions from FPI and other leading industry figures, covering all aspects of the financial planning industry.


TECHNOLOGY Grant Locke, Head of OUTvest 14

TECHNOLOGY The future of investing Blue Chip sat down with Grant Locke, Head of OUTvest, to chat about the recent launch of their platform, built from the ground up for financial advisors. Grant, what exactly is OUTvest for advisors? OUTvest aims to help advisors scale their practices and grow their revenue, while reducing their administrative and compliance burdens, as well as the cost of investing for their clients. Our white-labelled platform allows an advisor to build and implement a personalised investment plan in minutes, including generating and signing of the record of advice, with no documents to upload. Once implemented, the client and advisor can track the progress of the goal until it has been achieved. We will even generate and distribute the annual review on behalf of the advisor on the anniversary of the investment. Advisors or clients can instruct amendments or transactions (coming soon) digitally, and where the advisor instructs, the platform will automatically ask the client to approve the instruction and retain an audit trail to assist the advisor with record-keeping. We all know that investment fees matter, and we have built a fee proposition that we believe is a game-changer. It’s called ONEfee, and to achieve it, we had to change the way that fees are charged when compared to the rest of the retail investment industry. Helping advisors grow their tail Regulatory pressure keeps rising, and many advisors are purposefully shrinking their practices to try to cope with the increasing requirements – an unintended consequence, but necessary for advisors to ensure they are compliant. We believe that OUTvest for financial advisors can help advisors continue to scale their practice faster and create a meaningful book that will allow them to identify the next generation of highnet-worth clients. And, of course, build solid relationships early on – for the long term. Our primary aim is to make sure the investment approach is as low cost and efficient as possible while being well-diversified and compliant with applicable regulations. How does OUTvest help advisors scale their practice? A financial advisor can potentially complete an entire investment journey in minutes, within a white-labelled platform. This includes upfront, product-specific advice and onboarding, with the digital signature of the Record of Advice. No other administration required. No uploading KYC documents, and no additional work associated with a Section 14 transfer if added. What’s more, clients can sign up remotely, without the advisor even being present, through a white-labelled link. From the client’s viewpoint, the advisor has designed and developed a tailored investment plan, which can be tracked all the way to completion on the client portal or the app. The result is that the conversation shifts from short-term performance to a focus on achieving the long-term client objectives, balancing the conversation between both contributions and investment performance. The underlying investment exposures are designed specifically to work with the platform and are designed using the latest portfolio construction methods to focus on efficiency and low cost. The performance of the funds against their respective performance objectives and the relevant peers in the market are carefully reviewed by a qualified investment committee on an ongoing basis. Changes to the asset allocation of the funds are made through a researched and documented process aimed at identifying changes in investable opportunities on a structural level. We don’t implement tactical changes to the index portfolio construction, only long-term changes. Our primary aim is to make sure the investment approach is as low cost and efficient as possible while being well-diversified and compliant with applicable regulations. 15

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