Bringing investment specialists into the alts conversation
Three commentators unpack how investment specialists have become increasingly client-facing to support financial advisers in understanding alternative investment funds.
Last month, Money Management explored how financial advisers are relying on business development managers (BDMs) more than ever to articulate the benefits and risks of the ever-growing alternative and private market investment landscape.
“Where there are good BDMs, you can then gain a better understanding of what’s actually happening in the fund and the reasoning for it. Whereas with funds that don’t have BDM access, it’s very difficult to work out what’s going on and why, and then be able to help us and our clients make an informed decision about what to do,” shared Andrew Saikal-Skea, adviser and founder of Saikal-Skea Independent Financial Advice.
While BDMs can offer a strong pool of knowledge on these products, the intricate complexities of private market funds means BDMs are also having to connect advisers with specialised investment professionals.
Annabel Roberts, BDM at Reach Alternative Investments, said her team is often relying on investment specialists, heads of investments and portfolio managers when it comes to the adviser education piece to foster trust.
“This side of the market is super complex, so as much as BDMs really need to be well-informed about the products they’re bringing to market, there are far deeper complexities that come along with that,” she said in a conversation with Money Management.
“If you’re talking about private credit, the loan types etc, that conversation needs to be between an investment specialist and an adviser. So part of our role is making sure that we’re bringing the right people into the conversations to make sure the adviser is really well educated and well up to speed with what we’re bringing to market.”
This can include investment specialists providing educational sessions for advisers to ensure they are fully informed and comfortable accessing these investment vehicles for clients.
Recent investment specialist hires include two investment specialists from Lonsec and HUB24 joining Perennial, Orbis hiring an investment specialist from Allan Gray, and Ellerston hiring from L1 Capital.
Over at JP Morgan Asset Management (JPMAM), the firm is hosting regular events for advisers so they can communicate directly with those in charge of managing alternative assets.
“My team regularly gets questions from their clients as they navigate the different alternative solutions available. What we’ve found really helpful is hosting regular in-person visits so clients are able to see and speak directly to those who are managing the assets,” explained Mark Carlile, JPMAM’s head of wholesale distribution for Australia and New Zealand.
“There’s nothing quite like case studies they share on why they did or did not invest in a particular opportunity and really highlights the research and due diligence undertaken for each and every investment. In addition to the in-person events, we also schedule virtual updates to enable our clients to receive information in a format that suits them best.”
Investment manager Capital Group is also focused on working and partnering with its adviser clients by offering training services and educational tools.
“Our client group team and our investment specialists work hand in hand with advisers in Australia to ensure that investors are informed on the dynamics that may be at play that shape investment decisions and especially portfolio construction,” said Jorden Brown, head of client group at Capital Group.
“We also offer financial advisers tailored content and provide practice management tools, focusing on areas where Capital Group excels, such as the benefits of long-term. Clients are also looking at their asset managers to help them in a range of value-add activities, not just portfolio management.”
He added that Capital Group’s investment specialists serve as a key interface between its portfolio management teams and the advisers it services.
With new private asset and alternative funds hitting the market each week, Roberts said advisers receiving additional education via fund managers and investment specialists is ultimately critical to building trust.
“There’s so much out there that it’s almost now harder to understand. So I think the biggest thing to build trust with advisers is to have that education and be able to introduce them to people that can educate them, like investment specialists and portfolio managers, so that they feel really comfortable and confident in what you’ll bring to market,” the BDM elaborated.
“The BDM acts like a first point of contact. It’s that raising awareness, getting in the door, and ensuring the advisers have a solid foundation of understanding. But when it comes to the more complex questions, I think it’s really important to bring specialists into the conversation. Those that do that can build more trusted foundations with advisers.”
AUTHOR
Jasmine Siljic
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