disclaimer - ifa · 2018-03-28 · 3 key benchmark metrics small practices $0-$499,999 medium...

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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

tel:132652

http://www.mlc.com.au/

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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


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


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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


Technology/operating systems

Portfolio construction

Diversification

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Regulatory and compliance Bigger impact than first thought


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Regulatory and compliance – BID and implications


N

8



N T

9



Features

Benefits

Cost

N T

10



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


N T +1 A platform is a product

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Regulatory and compliance Growth of self-licensed practices


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Diversification


TOP 10%






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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


Source: Wealth Insights, Service Level Report 2017.

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Technology and operating systems


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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TOP 10%










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


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


Portfolio construction Asset management – the growth of global


Portfolio construction Asset management – multi-managers holding ground


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

23 Market trends driving IFA practice profitability, efficiency and client value | March 2018

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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 ]


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


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Market trends influencing profitability, efficiency & value


TOP 10%










Diversification

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Diversification – the ‘mega trend’ The advice spectrum


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


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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


30 Market trends driving IFA practice profitability, efficiency and client value | March 2018




Diversification



TOP 10%






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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


Amanda Lambert State Manager

Strategic Accounts VIC

[email protected]

0404 021 135

Krista Demiris Manager

Business Development

[email protected]

0488 222 803

Contact us – VIC


mailto:[email protected]


Contact us – NSW


Alex Godoy Manager


[email protected]

0475 977 872

Andrew Brown Manager


[email protected]

0439 372 224

Brendan Dempsey Senior Manager

Strategic Accounts NSW

[email protected]

0413 184 787




Contact us – QLD


Patrick Johnston

Senior Manager

Strategic Accounts QLD

[email protected]

0404 881 572

Samantha Bishop

Associate


[email protected]

0472 819 388

Bianca Wise

Manager


[email protected]

0451 411 279

Nicole Garrett

Manager


[email protected]

0472 819 371





Contact us – WA


Aaron Cattai State Manager WA/SA

[email protected]

0411 255 062

Brendan Raynor Manager, Business Development

[email protected]

0455 052 306



disclaimer - ifa · 2018-03-28 · 3 key benchmark metrics small practices $0-$499,999 medium...

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