Getting personalisation right
Josh Persky, Founder & CEO of Briefcase
Personalisation in the world of finance and investment management takes on many different characteristics. In its simplest form, personalisation is the act of tailoring communication, an experience or a product based on an individual’s needs, wants and desires.
A recent McKinsey study “The Value of getting personalization right – or wrong – is multiplying” highlighted that personalisation directly influences buying behaviour, with consumers rewarding businesses with a personal approach by extending loyalty, repeat engagement and recurring purchases.
At Briefcase, we recognise that personalisation is a force multiplier, one that many investors now consider a basic expectation.
Financial advice firms that can build and activate this capability at scale can put customer lifetime value on a new trajectory - driving double-digit revenue growth, superior retention, and richer, more nurturing long-term relationships.
How does Briefcase fit in here?
The Briefcase direct indexing portal allows advisers to customise investment portfolios based on client preferences such as values-based investing (ESG) or individual considerations, whilst still providing an index return.
Diversifying concentrated stock positions. More than ever, executives and long-term employees are being compensated in company equity, be that stock options or restricted stock units. These investors and their advisors are looking at ways in which to diversify the portfolio. Often, these positions will have a low-cost basis, making them hard to get out of without incurring a substantial, taxable gain. Over time, these exposures represent concentrated holdings, relative to the size of the overall portfolio. Direct Indexing can provide options to diversify the portfolio.
Unique and specific investment constraints. Many investors have specific investment restrictions that prevent them from holding certain securities. These can be religious foundations and charities whose investment policy statements prevent them from holding certain assets (adult entertainment, contraception, alcohol) as well as investment bankers and legal practitioners involved in mergers and acquisitions deals where they are restricted from trading or holding certain securities.
Tax considerations. Traditional unit trust structures (ETFs and Managed Funds) provide their underlying investors with no control over capital gains from one year to the next. Direct index investors hold individual stocks, not units in a fund. This potentially allows for greater flexibility in managing capital gains.
Professionally managed, personalised portfolios for every client. Highly customised direct indexing strategies offered by Briefcase provides an advisor with operational precision to build an institutional grade, custom portfolio for every one of their clients. Each portfolio is unique, different, and personalised.
About Briefcase
Our core belief is that every investor deserves a portfolio that's built exclusively for them. In close collaboration with financial advisors, we’re proud to be the pioneering direct indexing platform in Australia.
The Briefcase team’s collective experience in managing more than $50 Billion dollars gives us the insight to recognise that the success of any client/advisor relationship requires a strong set of modern and institutional grade portfolio construction capabilities.
Our technology empowers financial advisors to personalise their client’s portfolios, replicating an index using a rules-based approach. This allows for customised, index-based investment strategies, whilst simultaneously removing the shackles of an ETF or managed fund wrapper.
By utilising individual securities, as opposed to a unit trust, a financial advisor can now deploy values-based investment preferences (ESG), retain investor voting rights, incorporate existing holdings, as well as potentially delivering superior after-tax outcomes.
Most importantly, Briefcase technology is built to reinforce collaboration between a client and their financial adviser. A financial adviser’s expertise remains fundamental in delivering a personalised experience.
Briefcase Pty Ltd (AFSL Number 546257) does not warrant the accuracy, completeness, or correctness of any information herein.
This material provides general information only and does not consider your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should assess whether the material is appropriate for you and obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. This material is not a financial product recommendation or an offer or solicitation with respect to the purchase or sale of any financial product in any district. Any investment is subject to investment risk, including delays on the payment of withdrawal proceeds and the loss of income or the principal invested. While any forecasts, estimates and opinions in this material are made on a reasonable basis, actual future results and operations may differ materially from the forecasts, estimates and opinions set out in this material. No guarantee as to the repayment of capital or the performance of any product or rate of return referred to in this material is made by Briefcase.