Brisbane Private Wealth | Financial Express Case Study

FE ANALYTICS HELPS BRISBANE PRIVATE WEALTH TELL A STORY WITH DATA

Brisbane Private Wealth are a full service financial planning firm with a client list of over 200, many of whom are retirees or pre-retirees. They are exponents of ‘evidence-based investing’, and have found that drawing on the depth of data that FE Analytics offers has ‘improved our business efficiency enormously’ in communicating this message to clients.

Rob Chester joined Brisbane Private Wealth in 2013 when he returned to Australia from the UK. He is one of a team of 4 advisers.

Historical market data

FE Analytics plays a central role in getting across the key initial message of Brisbane Private Wealth’s investment philosophy.

To demonstrate the effectiveness of their approach throughout market cycles, Rob has used the range of market indices and FE sector averages available within Analytics to build representative portfolios with a very long history.

‘I have been able to demonstrate the benefits of our investment philosophy when compared to a traditional index fund. Analytics allows us to demonstrate how that investment approach has worked over the last 10, 20, 30 years’

Client engagement

Rob also uses FE Analytics to produce performance comparisons for prospective clients. The software allows him to back test a client’s current investment portfolio with their model portfolios.

‘Most clients want to see some type of performance comparison to justify why they should take our advice. Having this tool readily available helps with on boarding a new client. You can quickly demonstrate how the client’s current portfolio has been performing, the risk characteristics and the asset allocation’.

Educating clients about risk

Finally, Rob believes the first step to an enduring relationship is to educate the client and help them understand why the advice and model portfolio is appropriate for them.

‘We see ourselves more as risk managers rather than investment managers who only focus on returns,’ says Rob. ‘A large majority of clients don’t really know how much risk they are taking in their portfolios.’

How to shift the focus to volatility when clients are often so preoccupied with performance? Rob describes the scatter chart (risk vs return) as a tool that allows him to compare individual funds, the client’s current asset allocation alongside their model portfolios. This helps the client understand the actual level of risk they are taking.

‘FE Analytics is a great tool with a lot of features. It helps us to educate and continually engage with our current clients whilst also helping to on board prospective clients.’

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