BetaShares launches bespoke Asset Allocation and ETF Model Portfolio Service for Australian financial advisers

Alex Vynokur

In response to adviser demand, leading exchange traded fund manager BetaShares has launched an Asset Allocation and ETF Model Portfolio Service for its financial adviser clients.

The service comprises a modular set of solutions, including:

• Strategic asset allocation (SAA): based on forward-looking expected return and risk for each major asset class, optimised in accordance with APRA’s standard risk measure
• Dynamic asset allocation (DAA): which dynamically adjusts asset allocation positions based on current asset price valuations as well as economic and financial market trends across global markets
• Model Portfolios (SAA & DAA): A fully implemented portfolio of exchange traded funds for both the SAA and DAA
• Managed risk and income model portfolios: A separate set of model portfolios that have been optimised to provide enhanced income and less volatile returns.

Each portfolio set has been developed for five different risk profiles, so advisers can choose between a conservative portfolio, a moderate portfolio, a balanced portfolio, a growth portfolio and a high growth portfolio. The performance of the model portfolios will be tracked, and model allocations will be adjusted on a quarterly basis as asset valuations and projected returns change accordingly.

The Asset Allocation & ETF Model Portfolio service is a bespoke offering for BetaShares’ financial adviser clients. Participating advisers will receive a comprehensive quarterly report, face-to-face support, digital assets, and be invited to regular, interactive webinars.

BetaShares Director of Institutional Business and National Accounts, Vinnie Wadhera, explained: “In developing the new service, we spent a lot of time with our existing adviser clients to seek feedback as to how we might be able to assist them further with their investment processes. The feedback led us to develop a modular service whereby an adviser can use as little or as much as they require. This can range from advisers using the SAA or DAA as an input for their own investment committee decisions, all the way through to utilising our fully implemented model portfolios.”

Commenting on the launch, BetaShares Managing Director, Alex Vynokur, said: “Our new service illustrates how exchange traded products can be used to provide transparent, diversified and costeffective investment solutions for a range of investors with differing risk profiles and investment objectives.

“Several financial advisory groups have now taken up all or part of the modular offering, implemented in a low-cost, accessible way.”

“Our unique managed-risk portfolios have been particularly well received by advisers, reflecting a focus on regular income and capital preservation for retiree clients”.