disclaimer - ifa · 2018-03-28 · 3 key benchmark metrics small practices $0-$499,999 medium...
TRANSCRIPT
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Disclaimer
Navigator Australia Limited (ABN 45 006 302 987 and AFSL 236466) (NAL) is the issuer of IDPS platform products, and NULIS Nominees
(Australia) Limited ABN 80 008 515 633, AFSL 236465 (NULIS) in respect of superannuation platform products. The material has been prepared
for use by advisers only. The contents of this presentation must not be made available, or communicated, to any retail client. You should obtain
and consider the relevant platform offer documents before deciding whether investments in the platform product are appropriate for your clients
and their financial needs or circumstances. Relevant disclosure documents for each product are available by calling 133 652 or from
www.mlc.com.au. NAL and NULIS are part of the National Australia Bank (NAB) Group of companies. An investment with NAL or NULIS is not a
deposit or liability of, and is not guaranteed by, NAB. PIC portfolios available through the ISMA can only be accessed by PIC Accredited
Advisers. A PIC Accredited Adviser is an authorised representative of a licensee who has received accredited approval from PIC to access their
services and the PIC-labelled investment options. The information is correct as at March 2018 but may change into the future.
Any advice and information in this presentation is general only and has been prepared without taking into account your particular circumstances
and needs.
Before acting on any information contained in this presentation, you should assess or seek advice on whether it is appropriate for your needs,
financial situation and investment objectives.
Market trends driving IFA practice profitability, efficiency and client value | March 2018
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KEY BENCHMARK
METRICS
SMALL PRACTICES
$0-$499,999
MEDIUM PRACTICES
$500,000-$999,999
LARGE PRACTICES
$1,000,000+
PROFITABLE
PRACTICES
TOP 10%
Gross practice revenue $288,097 $689,442 $2,559,072 $1,311,188
Practice expenditure $269,398 $462,944 $1,614,463 $507,613
Profitability percentage 7.9% 32.3% 37.8% 60.0%
Number of clients 222 566 1,339 507
Total FTE employees 2.1 3.9 11.4 4.4
Practice profitability in focus
Market trends driving IFA practice profitability, efficiency and client value | March 2018
KEY BENCHMARK
METRICS
SMALL PRACTICES
$0-$499,999
MEDIUM PRACTICES
$500,000-$999,999
LARGE PRACTICES
$1,000,000+
PROFITABLE
PRACTICES
TOP 10%
Gross practice revenue $288,097 $689,442 $2,559,072 $1,311,188
Practice expenditure $269,398 $462,944 $1,614,463 $507,613
Profitability percentage 7.9% 32.3% 37.8% 60.0%
Number of clients 222 566 1,339 507
Total FTE employees 2.1 3.9 11.4 4.4
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Practice profitability in focus
Market trends driving IFA practice profitability, efficiency and client value | March 2018
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Market trends influencing profitability, efficiency and value
KEY BENCHMARK METRICS PROFITABLE PRACTICES
TOP 10%
Gross practice revenue $1,311,188
Practice expenditure $507,613
Profitability percentage 60.0%
Number of clients 507
Total FTE employees 4.4
Regulatory and compliance
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Technology/operating systems
Portfolio construction
Diversification
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Regulatory and compliance Bigger impact than first thought
Market trends driving IFA practice profitability, efficiency and client value | March 2018
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Regulatory and compliance – BID and implications
Market trends driving IFA practice profitability, efficiency and client value | March 2018
N
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Regulatory and compliance – BID and implications
Market trends driving IFA practice profitability, efficiency and client value | March 2018
N T
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Regulatory and compliance – BID and implications
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Features
Benefits
Cost
N T
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Regulatory and compliance – BID and implications
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Features
Benefits
Cost
Features
Benefits
Cost
N T <
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Regulatory and compliance – BID implications + VI
N T +1 Market trends driving IFA practice profitability, efficiency and client value | March 2018
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Regulatory and compliance – BID implications + VI
Market trends driving IFA practice profitability, efficiency and client value | March 2018
N T +1 A platform is a product
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Regulatory and compliance Growth of self-licensed practices
Market trends driving IFA practice profitability, efficiency and client value | March 2018
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Market trends influencing profitability, efficiency and value
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Regulatory and compliance
Technology/operating systems
Portfolio construction
Diversification
KEY BENCHMARK METRICS PROFITABLE PRACTICES
TOP 10%
Gross practice revenue $1,311,188
Practice expenditure $507,613
Profitability percentage 60.0%
Number of clients 507
Total FTE employees 4.4
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Technology and operating systems Top 10 platform attributes advisers value
2017
Rank SERVICE ATTRIBUTE 2017
5 most important
2015
5 most important
Difference
2015-2017
1 Value for money for client 65% 64% 1
2 Managed funds menu suits clients in it 57% 57% 0
3 Overall ease of doing business 52% 52% 0
4 Administrative efficiency concerning turnaround times
(redemptions, etc.) 37% 39% -2
5 Ability to resolve problems quickly and efficiently 25% 23% 2
6 Well-integrated IT systems that make it easy to
do business 22% 24% -2
7 Quality of insurance offering 22% 30% -8
8 Reputation and brand image 21% 23% -2
9 Direct equities offering 20% 22% -2
10 Quality of pre-mix offering
(incl. multi- or single-manager/diversified etc.) 18% 18% 0
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Source: Wealth Insights, Service Level Report 2017.
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Technology and operating systems
Market trends driving IFA practice profitability, efficiency and client value | March 2018
MLC Wrap was the only platform to enjoy an improvement in overall satisfaction among primary users in the last 12 months.
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Market trends influencing profitability, efficiency and value
KEY BENCHMARK METRICS PROFITABLE PRACTICES
TOP 10%
Gross practice revenue $1,311,188
Practice expenditure $507,613
Profitability percentage 60.0%
Number of clients 507
Total FTE employees 4.4
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Regulatory and compliance
Technology/operating systems
Portfolio construction
Diversification
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Portfolio construction in a practice
Seamless client experience
Advice and client conversations/outcomes Increased revenue/
client outcomes
SoA construction
Efficient model Back office processes and technology
Efficient model
Financial planning tools and research Consistent approach
Growth strategy/lead generation/marketing
The planning horizon
Scalable business
Client engagement process – A2C
Business
vision
Value proposition
Advice and
investment beliefs
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Portfolio construction Time-effective model
Market trends driving IFA practice profitability, efficiency and client value | March 2018 19
Portfolio construction Asset management – passive over active
Market trends driving IFA practice profitability, efficiency and client value | March 2018 20
Portfolio construction Asset management – the growth of global
Market trends driving IFA practice profitability, efficiency and client value | March 2018 21
Portfolio construction Asset management – multi-managers holding ground
Market trends driving IFA practice profitability, efficiency and client value | March 2018 22
Portfolio construction Asset management – managed accounts mania
Portfolio construction The accessibility of managed accounts increased sharply in 2017, with half of planners now using a platform with this capability as their main platform
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Portfolio construction SMA – efficiency in action
Wayne Lear Principal, Stewards FMG
Early adopter of SMAs in 2006.
~20% of FUM in SMAs
(believes this will grow).
Business efficiencies gained:
Savings of $200,000-$300,000 per year in admin
costs and time efficiencies
Back office streamlined: previously had eight staff
running 330 Individually Managed Accounts. Now
only four staff with the same number of clients
Transparency and control for clients
Time savings of around 45 minutes per trade
(compliance and admin)
[ High resolution
image required ]
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Evolution of SMAs
3 new Single Sector
SMAs plus 6 PIC Lifecycle
Multi-asset SMAs.
Total 20 SMAS.
Early SMA platform adopter
(Antares Equities).
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2008 2017
Market trends driving IFA practice profitability, efficiency and client value | March 2018
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Market trends influencing profitability, efficiency & value
KEY BENCHMARK METRICS PROFITABLE PRACTICES
TOP 10%
Gross practice revenue $1,311,188
Practice expenditure $507,613
Profitability percentage 60.0%
Number of clients 507
Total FTE employees 4.4
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Regulatory and compliance
Technology/operating systems
Portfolio construction
Diversification
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Diversification – the ‘mega trend’ The advice spectrum
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Super | non-super | property
$2.1tn $3.1tn $6.1tn
The advice spectrum needs to cover all three.
Australian mortgage
market is approx.
$1.2 trillion; turns
over every 4-5 years
and is growing at 5%
80% of Australians
have a mortgage
and some form of
debt…
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Diversification Debt is a significant and growing opportunity; competition and managing conflicts will see different business models emerge
40% of financial planners ‘write’ banking
products today; of which $14.4bn was
residential lending in the last 12 months…
“…not to say we’re not focusing on mortgages, but you can’t always
have this one little river running through your business – sometimes
there may be a drought.” Mortgage Choice on diversification into financial planning services
Mortgage
brokers
Financial
advisers Overlap
Greater propensity to recommend debt solutions to clients
More professional, relationship-based business models
Market trends driving IFA practice profitability, efficiency and client value | March 2018
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Opportunity to grow revenue is limited only by the referrals you generate
Diversification New revenue potential per financial planning business
One loan settled per month, your business can add ~$27,456 to its bottom line
Three loans settled per month, that increases to ~$82,368 per year
Market trends driving IFA practice profitability, efficiency and client value | March 2018
30 Market trends driving IFA practice profitability, efficiency and client value | March 2018
Market trends influencing profitability, efficiency and value
Regulatory and compliance
Portfolio construction
Diversification
Technology/operating systems
KEY BENCHMARK METRICS PROFITABLE PRACTICES
TOP 10%
Gross practice revenue $1,311,188
Practice expenditure $507,613
Profitability percentage 60.0%
Number of clients 507
Total FTE employees 4.4
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BID, monitoring and documentation?
Opportunities around
platform/platforms’ review?
Approach to portfolio construction,
investment philosophy and SMAs?
Diversifying revenue streams?
Profitability, efficiency and client value Some considerations
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Amanda Lambert State Manager
Strategic Accounts VIC
0404 021 135
Krista Demiris Manager
Business Development
0488 222 803
Contact us – VIC
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Contact us – NSW
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Alex Godoy Manager
Business Development
0475 977 872
Andrew Brown Manager
Business Development
0439 372 224
Brendan Dempsey Senior Manager
Strategic Accounts NSW
0413 184 787
Contact us – QLD
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Patrick Johnston
Senior Manager
Strategic Accounts QLD
0404 881 572
Samantha Bishop
Associate
Business Development
0472 819 388
Bianca Wise
Manager
Business Development
0451 411 279
Nicole Garrett
Manager
Business Development
0472 819 371
Contact us – WA
Market trends driving IFA practice profitability, efficiency and client value | March 2018
Aaron Cattai State Manager WA/SA
0411 255 062
Brendan Raynor Manager, Business Development
0455 052 306