Matthew Kidd
Diversified financial services group, Omniwealth, has developed, in conjunction with Republic Wealth, Australia’s only true fully automated investment model (similar to robo advice), called OmniwealthDirect.
OmniwealthDirect takes around ten minutes from opening the account online (this includes a Macquarie CMA and a trading account) to receiving bank account details. The portfolio will be invested as soon as the client’s funds hit the trading account.
OmniwealthDirect clients will experience a seamless application process followed by an investment in a basket of exchange traded funds (ETFs) which are run by the Republic Wealth investment committee. The ETF providers include the largest and most respected in the world like Blackrock, Vanguard and iShares.
Republic Wealth currently operates an array of portfolios from Conservative through to High Growth. The portfolios are mapped to the risk survey that clients complete using well-respected risk profiler, Finametrica.
Omniwealth works in conjunction with Republic Wealth in providing services to OmniwealthDirect. Omniwealth and Republic Wealth are separate companies.
“Automated advice allows investors such as wealth accumulators, High Net Wealth and SMSF’s to passively invest, with their own HIN, locally and internationally at a fraction of the normal cost, due to the lack of third party involvement, such as a financial adviser or broker.
“Non-advised investments such as OmniwealthDirect work hand in glove with advised portfolios as it allows us the ability to service all investors and not just those who can afford direct advice,” Omniwealth Group Managing Director Matthew Kidd said.
Here are some of the key points:
- Accounts can be opened in 10 minutes with automatic investment processes once funds are transferred. A streamlined, paperless approach to doing business
- Processes are all fully compliant with AML and KYC obligations – completed instantaneously
- The process includes metric profiling through Finametrica to deliver algorithmic outcomes for investors
- Investor receives an SOA and MDA agreement at the end of the process providing robo advice, thereby cutting down on human error and embedding consistent compliance outcomes into the process
- Upon completion of registration, investor receives an OpenMarkets or Macquarie Bank trading account and CMA opened in their names
- Investments are held under the client’s HIN not custodian, which means only the client owns the investments
- Funds are invested in ETF model portfolios that are run by the Republic Capital investment committee. The ETF providers include respected market participants such as Blackrock, Vanguard and iShares
- Portfolio performance information is available 24/7 on all devices such as iPhone, tablet through our technology partner Sharesight
- In the US, many Billions USD of investor’s funds has gone into automated advice firms over the last 3 years.
- Investors can set up automatic deposits to build the value of their portfolio over time
“We are certain of the success of automated advice in Australia because of the strong take-up in the US where $30 Billion USD of investor funds have already been placed into large, automated advice models over the last three years,” said Mr Kidd.