Nucleus Wealth and Arrow Financial Advice join forces to offer Robo white label advice

From

Damien Klassen

Nucleus Wealth and Arrow Financial Advice today announced a partnership whereby Arrow will use Nucleus Wealth’s white label digital advice platform, Nucleus Wealth Fusion, to cost-effectively service the low balance market and build relationships with clients from the beginning of their nest egg building journey.

Unlike most Robo options, the Nucleus-powered Arrow Fusion platform portfolios will be actively managed and feature over 30 ESG filter choices, making it the most comprehensive and sophisticated Robo service in the Australian market, and arguably, globally.

“Arrow has been looking to provide a digital offering to our clients for a while now, as we are seeing increasingly fewer options for low balance clients to get advice, and consumers wanting more and more to interact with companies digitally,” says Arrow Financial Advice’s CEO Michael Voss.

Nucleus Wealth CEO Damien Klassen says: “The question of if and how digital and full-service advice would work together has been around as long as digital advice. Nucleus Wealth believes the best outcome for consumers is when they complement each other. We want to support advisers in the integration process, acknowledging that between COVID-19 and FASEA, they have plenty to deal with already.”

Nucleus Wealth Fusion is a digital advice platform backed by Nucleus Wealth’s investment team. The platform allows Arrow to offer clients:

  • A simple, but thorough, online onboarding experience that provides personal investment advice and ID verification;
  • Dynamic risk management and stock selection;
  • More than 30 ethical and portfolio filters to customise portfolios for each client;
  • Investments through personal, joint, company, trust, super and SMSF accounts;
  • Complete portfolio and investment management transparency;
  • The tax benefits of a separately managed account; and
  • Liquid, secure assets held in their own name with JP Morgan and HSBC as custodians.

“The Nucleus Wealth platform we have adopted as part of the Arrow family of options means for as little as $10,000 starting balance clients can begin their nest egg with an actively managed portfolio that truly reflects their values and priorities. And it can be modified any time as investors’ circumstances and/or preferences change,” says Voss.

“Nucleus Wealth has an outstanding investment pedigree headed by Damien Klassen. His team has more than 50 years industry experience and were one of the few Australian wealth managers to predict the COVID correction and, importantly, to act on it. This, combined with the fact that ethical investing is one of the strongest investment trends globally, makes us delighted and proud to be partnering with Nucleus Wealth to bring our clients this offering,” says Voss.

Klassen says: “We saw an opportunity to meet the increasing demand for ethical investments and increasing disparity in ethical beliefs. Offering individual filters for each ethical consideration is important because our research shows that reducing an investment universe by more than 5% begins to exponentially affect performance.

“Time and resources are of the essence for financial planners today, so we have made the sign-up process quick, secure and compliant. Advisers can easily collect and manage client profiles, ethical preferences and annual opt-ins.”

Voss says: “This digitally based advice solution gives us the ability to cost effectively service the low balance market and build relationships with our clients from the very beginning of their journey.”

They conclude: “We believe the best advice in future years will be a fusion between advanced digital tools and adviser know-how. We are looking forward to being at the forefront of these changes.”

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