Consilium has partnered with Auckland asset consulting firm MyFiduciary to produce a new range of model portfolios for the Synergy Investments platform.
MyFiduciary research forms the basis of six new models for Synergy, bringing the total offerings on the Consilium-owned discretionary investment management service (DIMS) to 28.
Vivecca Robinson, Synergy senior adviser services manager, said the new MyFiduciary range complements the predominately passive ‘asset class’ style of the Consilium portfolios.
“We’ve had feedback from our advisers wanting to offer clients the option of a more active series of model portfolios through Synergy,” Robinson said. “There is not just one way to invest money, there are multiple portfolios and Synergy offers freedom to advisers to choose the desired pathway for their clients.”
Consilium took over full control of the Synergy service from distribution partner, SBS Bank, a couple of years ago, growing the DIMS offer to about $550 million. The Consilium-built portfolios are “developed from an evidence based asset class investment philosophy”, the Synergy website says – typically code for Dimensional Fund Advisors (DFA) products, although the suite includes other managers including Harbour Asset Management, BlackRock iShares and Vanguard.
However, the MyFiduciary Synergy portfolios adopt a ‘core-satellite’ approach, mixing baseline index funds with an eclectic palette of active managers. As well as DFA, iShares and Vanguard, the MyFiduciary passive players include local offers from Simplicity, SuperLife and Kernel Wealth. At the active end of the spectrum, the new Synergy portfolios feature funds from Allan Gray, Daintree, Hunter, Castle Point, Nikko and Platinum.
Chris Douglas, MyFiduciary principal, said the Synergy deal opened up the consultant’s research services to a wider investment audience via the growing network of financial advisers taking the DIMS route on the Consilium platform.
“We offer a well-researched investment solution,” Douglas said in a release. “We rigorously monitor our portfolios, which will be efficiently managed and rebalanced through a discretionary investment management service.”
He said the increasing popularity of DIMS model portfolios in NZ mirrored the trend across the Tasman where so-called ‘managed accounts’ have grown exponentially in recent times among the Australian financial advisory industry.
As well as the new MyFiduciary models, Consilium “is launching a series of new tools and services as part of its ongoing investment to create end to end, digital advice solutions including a risk profiling tool, goal planning calculator, statement of advice template and a full digital review system”, according to the release.
The Christchurch-based Consilium has more than $4 billion in funds under management administered via about-to-be-upgraded FNZ technology. Consilium also has a new KiwiSaver scheme in the pipeline with a launch date yet to be confirmed.