LEAP - Driving Better Value
In these days of volatility, uncertainty and pedestrian returns, financial advisors are looking for tailored options to ensure they reach their investment targets for their clients.
A one-size-fits-all investment model fits no-one properly. Financial advisors need the tools to meet clients’ needs, and one way to do this is through an independent investment platform.
It is our experience that financial advisors want an investment platform partner that frees up time for them to focus on what they do best – advising their clients.
What is LEAP?
The Leading Edge Advisor Programme (LEAP) provides the professional advisor with an innovative and transparent pensions and investment platform solution. This unique service combines the expertise of both Conexim and Independent Trustee Company Ltd.
The LEAP investment platform enables financial advisors to:
- Drive better value for clients
- Offer more investment choice - access to over 7,500 UCITS Funds from leading international fund managers as well as direct equities, fixed income securities, Investment Trusts and ETFs from all international markets
- Provide a clear and transparent unbundled pricing model
- Access to a range of independently constructed Risk Rated Multi-Asset Investment Strategies built by 3rd party best in class fund managers across active, passive and evidence-based investment styles
- Make their business more efficient
- Enable a better business model
- Facilitate stronger compliance
- Enhance financial planning and implementation
Number one on this list is the ability of LEAP to drive better value for clients. As my colleague Eoin Hassett recently wrote in the FM Report:
“The introduction of investment platforms such as Conexim Advisors Ltd and others enables financial advisors to recommend investments to their clients safe in the knowledge that the fees they are disclosing are indeed the fees that have been deducted. These platforms focus on disclosure of ongoing charges figures (OCF), the all-in charge of a fund, rather than the declared annual management charge disclosed on fund fact sheets, which only shows a portion of the fee. Furthermore, the platform fee and pension wrapper are also clearly disclosed to investment clients."
When asked for a comment on the all-in pension fees Conexim can offer, Bill Casey of Conexim responded:
“It is relatively straightforward to have all annual charges clearly outlined when investing via Conexim or LEAP. The Trustee fees and custody fees are clearly outlined on an annual basis. Fund manager charges vary from fund to fund but are also clearly outlined in the key investor information documents (KIIDs). Advisor income is also clearly outlined on annual basis. When added together this will give an individual full transparency of total annual charges incurred on an annual basis.
Depending on fund or model portfolio choice and advisor fees the annual cost for a LEAP ARF can be as low 1.07%. This would be made up of:
- 0.40% for a combined trustee and custodian fee
- 0.17% for a Sample 60% equity 40% Bond Globally Diversified model portfolio built using Vanguards low-cost index funds
- Advisor trail 0.50%”.
On the face of it some funds may charge low annual management fees but have hidden costs that are not fully disclosed, or they might undercut their costs on one fund but put up costs on the others to make up for it.
Control the Controllable?
Areas like picking winning shares, funds, best performing fund managers, timing the markets, and the financial press must be considered by advisors but can ultimately be outside of their control. However, costs are one of the driving factors that dictate whether clients reach their goal—and are one of the only factors completely within advisor’s control. So, give costs the time and attention they deserve.
“The essence of risk management lies in maximising the areas where we have some control over the outcome while minimising the areas where we have absolutely no control over the outcome” Peter Bernstein: Against the Gods – The Remarkable Story of Risk
In short, the LEAP platform gives advisors and their clients more choice and more transparency without any conflicts of interest.
Steven Garavan
ITC Business Development Manager
*Please note this content is the view of the author and not of Independent Trustee Company