Matt Rady

Enhancements to BT Panorama’s service request tracker and award-winning mobile app, as well as improved client reporting, will be rolled out in the coming months, as part of BT’s initiative to support efficiencies and respond to cost and profitability pressures facing advisers.

“We’ve listened to advisers’ feedback and we’re delivering on our service promise by investing in BT Panorama and providing updates that may help advice practices with efficiency,” said Matt Rady, BT CEO.

BT recently conducted a survey on the top challenges advisers are facing. For the majority of the over 200 advisers who participated in the BT Adviser Sentiment Index survey, rising cost bases and pressure on profitability (83% of all respondents), as well as deteriorating economic and market conditions (86%), and legislative and regulatory changes (86%) are their top three challenges.

“While market conditions and the evolving regulatory landscape are external factors, what is most certainly in our wheelhouse is delivering improvements which may help advisers achieve greater efficiencies, reduce costs and ultimately spend more time focusing on servicing their clients,” said Matt Rady, CEO, BT.

“At BT we’re prioritising the updates to our platform technology that can make significant impacts,” Mr Rady continued.

The next series of enhancements to BT Panorama will see the capability of BT’s service request tracker broadened to allow advisers to request digital consent for most forms that are submitted online. Investors will be notified of the request for digital consent and can review the form and respond via the web and mobile. There are currently 31 forms available for online submission, covering a range of processes from account maintenance to transfers.

Later this year, visibility of requests on account closures will be improved on the service request tracker, with additional details on progress, to allow advisers to track the request from the initial validation stage, through to asset selldowns, and final payments.

The service request tracker was a standout for BT Panorama, according to the recently published Investment Trends’ latest Adviser Technology Needs Report, with advisers identifying the tracker as one of the most beneficial enhancements to the platform. Usage of the service request tracker grew by 44% in the six months to June 2023, with 68% of all advice practices on BT Panorama having used the feature.
Another BT Panorama capability lauded by advisers, the mobile app, was updated in early July to give advisers and investors the ability to request Centrelink schedules. Previously, the turnaround time for manual requests for Centrelink schedules was up to four days; now the information can be requested in minutes.

Looking ahead, in September the mobile app will be updated to include Investor Panorama News which includes product updates and enhancements, year end and process cut off dates, webinars, and more investor notifications (eg key dates and new online tools), and the service request digital consent enhancements.

The BT Panorama mobile app has been named by Investment Trends as the best in the wealth management industry, for five years in a row (Platform Competitive Analysis and Benchmarking Report, Investment Trends 2022, released in 2023).

BT is also introducing a new bulk client reporting feature, which will allow advisers and support staff to create up to 20 reporting groups, develop customised report packs and generate a suite of reports for multiple clients – to help advice practices save time.

Other upcoming enhancements include streamlining the existing process to enable direct debits on a linked bank account.

BT Panorama will also be updated to support the growth of managed accounts, through the introduction of a new reporting capability tailored for investment managers, allowing them to access a range of portfolio and business reports directly online, providing greater transparency and oversight.

BT’s managed accounts capability is a significant driver of growth on the platform Managed accounts excluding Adviser Portfolios . Funds under administration in managed accounts increased to $14.8bn, up 8% in the quarter ending June 2023, representing 14% of total FUA on BT Panorama.

Take-up of managed accounts has been growing steadily. Currently around 16% of BT Panorama client accounts are invested in a managed account.

“During volatile conditions, investment managers of managed accounts can execute investment decisions efficiently and respond to fluctuations in the market swiftly, at scale. In addition, managed accounts may enable advice practices to save time. As more advisers realise the efficiencies of implementing managed accounts, we expect steady growth to continue,” said Mr Rady.

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Matt Rady

Westpac has announced it has concluded the sales process for BT Platforms. Westpac will now retain and continue to invest in the business to aggressively compete in the platforms market.

BT is one of Australia’s leading platforms providers with $131 billion funds under administration As at 31 March 2023    . It supports more than 350,000 investor accounts and has relationships with almost half of Australia’s financial advisers, with more than 7,800 active advisers using BT’s platforms. c.16,000 ASIC registered financial advisers as at 31 March 2023

Following the merger of BT’s personal and corporate superannuation with Mercer earlier this year, BT is now also a simpler business focused on platforms.

Matt Rady CEO, BT said: “BT is a vibrant brand with more than 25 years of leadership in platforms and is now a simpler, better business.

“We will continue to invest in features to improve the adviser and investor experience based on feedback from dealer groups and advisers, including our leadership in digital capability and managed accounts as we transform the way we deliver service.

“To give advisers more time with their clients, delivering time-saving features for advisers and practice staff is a priority. We have already delivered initiatives including the BT Panorama Online Service Request Tracker, advice fee consent simplification, increase in client payment limits, Design Distribution Obligation (DDO) tools and a significant upgrade to the mobile app including the addition of the chat bot ‘Blue’.

“And these initiatives are being well received, for instance, BT Panorama Online Service Request Tracker has seen a strong take up and positive feedback with over 18,000 unique users and 2,800 advice practices now using the service with usage growing 34% in the last six months November 2022 to May 2023.

“We are continuing to grow our broad investment propositions, including our managed accounts offering and expanding our wholesale investor fund menu.”

Mr Rady said BT offers strength, security and confidence to its advice partners. “With the market increasingly focused on data security, Westpac’s technology capability and security provides advisers and investors with additional peace of mind”.

“The BT brand is synonymous with supporting financial advice, and I am really excited to take the business into a new era, as we continue to support quality financial advice to thrive,” said Mr Rady.

Mr Rady also thanked BT Chief Strategy and Product Officer, Kathy Vincent, who has decided to take up a role outside of BT.

“Kathy has made a defining mark on our business, having led Platforms through a significant period of transformation, including the exit of financial advice, supporting our advisers and members through COVID and migrations and guiding BT through its risk maturity journey.

“Kathy will be with us for some months, and we wish her well when she leaves later this year.”

Highlights BT platforms:

• 7,800 (unique) active adviser relationships
• Over 350,000 investor accounts
• $131bn in funds under administration (FUA)^[1]
• Number #1 platform provider by market share^[2]
• Number #1 for adviser relationships – BT Panorama^[3]
• Awarded Best Client Portal and Best Mobile App – five consecutive years^[4]
• Logins to the BT Panorama mobile app reaching 2.3 million in the past 12 months to May 2023, making up 44% of all logins
• Awarded the Highest Quality Platform rating, Chant West 2022 – BT Panorama

——–

[1] As at 31 March 2023
[2] BT market share 17.1% – Plan For Life Platform Wrap Report, December 2022, excluding retail corporate super
[3] According to advisers surveyed, Investment Trends, May 2022, Adviser Technology Needs Report: Industry Analysis
[4] Investment Trends Platform Competitive Analysis and Benchmarking Report, 2022, 2021, 2020, 2019 and 2018 – BT Panorama

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Matt Rady

BT, one of Australia’s leading wealth management businesses, has launched its first brand campaign in over two years. The refresh showcases its technical and investing knowhow to boost brand consideration among its target audience segments.

Launching across print, online and social media – as well as through a partnership with the Nine network – the Insightful Experts campaign promotes BT’s heritage, expertise, and prominent figures from the business alongside the firm’s unmistakable bold and blue brand.

The campaign also signals new beginnings for the long-standing wealth management business through the launch of BT Investigate – a new documentary series hosted by Besa Deda, Chief Economist, and Corrin Collocott, Chief Investment Officer – which explores trends and considerations facing financial advisers and investors in 2022 and beyond.

“Doing things differently is very much at the heart of this new era for BT and this campaign really speaks to that,” said Matt Rady, Chief Executive Officer, BT Financial Group. “We have a long and proud history supporting advisers and it’s time to increase our voice in the market, engage new audiences and move confidently into the future.

“This campaign mirrors BT’s broader strategy which sees us taking the best parts of our legacy forward, having the confidence to challenge and back ourselves, and continue to put the financial future of Australians first,” said Rady.

Launching later this month, the first episode of the new BT Investigate documentary provides an overview of market movements as at February 2022. Later episodes will observe emerging investment trends, including cryptocurrency and the rise of sustainable investing, particularly as it relates to environmental, social and governance (ESG) factors.

The series will join BT’s existing and extensive line up of podcasts and accredited webinars that support the professional development of advisers.

“This is an exciting time at BT – the success of our investing platform BT Panorama continues with over 6,000 advisers using the platform to manage more than 230,000 Australian’s super and investment portfolios, and this growth is set to continue.

“We’re cementing our position as a market leader, and this new campaign announces that we’re open for business, and ready – with the expertise required – to support the advisers and clients that choose BT,” added Rady.

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Matt Rady

Matthew Rady has been announced Chief Executive Officer, BT Financial Group (BTFG).

This newly created role leads a combined business that includes BT Platforms, including BT Panorama, BT’s Personal and Corporate Super, and Investments.

The new BT Financial Group business will continue to help more than 1 million Australians to have a better financial future with more than $169 billion^[1] in Funds under Administration.

Westpac Group Chief Executive Specialist Businesses & Group Strategy, Jason Yetton, said Matt is a high calibre executive who will drive positive customer and member outcomes through one BT Financial Group business. Matt will also seek to enhance the performance of the business as the strategic review of the Westpac’s specialist businesses continue.

“I am pleased that someone of Matt’s calibre will join us to ensure the business enters its next phase in a strong position,” Mr Yetton said.

Matt was previously the Chief Executive Officer at Allianz Retire+. He has more than 30 years’ experience in the financial services and wealth industries with executive roles in companies including Macquarie Group and global financial services technology company, IRESS.

BT Managing Directors, Kathy Vincent and Melinda Howes will report into the new BTFG Chief Executive Officer.

Kathy will continue to ensure BT Panorama remains the flagship wealth platform in the country, having a singular focus on delivering an integrated digital experience for advisers with their clients.

Melinda remains focussed on delivering stronger superannuation outcomes for members.

Matt commences with BT in October 2021.

——–

[1] Plan For Life Platform Wrap Admin Report, March 2021 (inc. BT Wrap, Asgard, BT Panorama, BT Super, BT Super for Life and Asgard Employee Superannuation Account).

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Matt Rady

Outdated portfolio thinking has left millions of Australian retirees vulnerable to low interest rates and higher sharemarket volatility, argues Allianz Retire+ .

As interest rates worldwide plumb record lows, retirees are taking on more risk to earn enough investment income to live on – a strategy that could permanently damage their wealth.

“The latest rate cut is another blow for retirees” says Allianz Retire+ CEO Matt Rady. “Some retirees are investing in shares to earn higher yield – and are left wide open to high market risk. Another financial shock could be financially catastrophic for them.”

In November, the Reserve Bank of Australia (RBA) reduced the official cash rate to 10 basis points, from 25 basis points. Retirees who have most of their savings in cash and bank term-deposits are barely earning a positive return on their money after inflation^[1]. In addition, retirees continue to face comparatively high deeming rates, suggesting that many may be going backwards by way of being means tested on income they simply cannot achieve in this environment.

In Australian shares^[2] , RBA analysis^[3] shows the average dividend yield was about 4.5 per cent in 2019 (from 6-7 per cent in previous years). Yields are likely to be lower this year because of dividend cuts and cancellations during the Coronavirus pandemic.

“Retirees are being forced up the ‘risk curve’ in the search for yield,” says Rady. “They are in a no-win situation. Returns from cash and bonds are too low to fund a dignified retirement. And high sharemarket volatility can damage their financial and physical wellbeing.”

Retirees let down

Rady says retirees need innovative tools to navigate the “new normal” of ultra-low rates that the RBA expects to persist for at least three years^[4] “Traditional portfolio-construction approaches for retirees are becoming increasingly less effective. What worked in the past in retirement investing isn’t cutting it today. ”

There are two main flaws with current portfolio approaches for retirees, says Rady. The first is using “volatility” to define risk. “Most retirees don’t care about volatility or standard deviations. Their greatest risk is running out of money during retirement” he says.

With Lonsec Investment Consulting, Allianz Retire+ challenged the appropriate measure of risk for retirees – an approach it calls the ‘Retirement Frontier’. “For years, retirees have been told to hold more defensive assets (bonds, cash) and fewer growth assets (equities) as they age,” says Rady.

“But that theory is now blown out of the water because it consigns them to low returns and a higher risk of running out of money.”

The second flaw is an inadequate response to share market volatility. Portfolios must contend with almost six times as much volatility to generate the same returns as 20 years ago, according to Callan Associates research^[5]. “Retirees have to hold a lot more growth assets to generate the same return as previous years,” says Rady. “But that exposes their portfolio to much higher return uncertainty at a time in their life when they have less capacity to recover from financial setbacks.”

Higher volatility also increases sequencing risk – the order and timing of returns – for retirees.

“Those nearing or just in retirement, who held more shares for yield, watched the value of their shares tumble in March as the pandemic erupted,” says Rady. “Sadly, some will never fully recover those losses because their portfolio was in the wrong place at the wrong time.”

Heightened loss-aversion is another factor. Research shows retirees feel the pain of a loss ten times more than joy of a gain^[6].

“Allianz Retire+ surveys^[7] show many retirees worry about potential losses on their share investments,” says Rady. “Many are ‘self-insuring’ against the risks of running out of money by living frugally, or they reluctantly draw down on their money. It shouldn’t be like that: retirees should be able to invest in the sharemarket with confidence and enjoy their retirement.”

Rady says financial advisers should look to protect retiree capital in the sharemarket. “As retirees hold more growth assets, protected equity strategies must be embedded within portfolios, to better manage volatility and all the problems it creates.”

Rady understands why some advisers have shunned protected style equity linked products in the past. “Historically, products with a protection element have been costly, requiring investors to sacrifice too much upside, or have been offered by product issuers that are not well known.”

Breakthrough retirement investment solution

Rady says that it’s a new breed of retirement product that can provide retirees with a greater degree of certainty, while specifically addressing the features retirees are seeking in their investments.

“We are seeing a lot of progressive advisers use our equity linked product with inbuilt protection to gain exposure to higher yield from Australian and Global shares, while minimising downside risk of uncertainty for their retiree clients. We think it’s an attractive proposition:  exposure to growth with inbuilt protection, at the cost of 85 basis points per year. That’s less than the cost of most managed funds.”

Investors are able to gain market-linked exposure to Australian and International Equities or a fixed rate. They then choose between three types of protection, depending on the level of losses with which they are comfortable. The three protections (Floors) are -10%, -5% or 0%. Each Floor has a corresponding “Cap” – the maximum gain investors can enjoy in one year. The lower the Floor, the higher the Cap.

Rady comments that retirees are still able to draw a regular income stream and adjust their investment and protection options annually – across the product term – based on changing lifestyle needs or market conditions.

For example, in any one year, a retiree could choose a -5% Floor on Australian equities. The most they could lose from their investment in a year at that Floor is 5 per cent. The most they could gain in a year is 6 per cent, as at November 2020.”^[8]

In this example, the retiree uses the equity linked protection strategy to generate a regular income stream by withdrawing (without fees)^[9] 4 per cent of their capital annually (the original^[10]minimum annual amount required to be paid annually –for retirees under 65 – under superannuation laws). The product allows investors to choose regular withdrawals either monthly, quarterly, half-yearly or annually.

A 4 per cent withdrawal is comparable to the current yield on Australian shares. “The big difference is retirees sleep easier knowing the most they can lose on their investment in a year is 5 per cent “ says Rady.

If Australian equities returned at least 6 per in that year, the retiree’s portfolio would keep up with inflation. “After withdrawing 4 per cent of their capital, the retiree’s portfolio would still grow by 2 per cent, which is a little more than the current rate of inflation,” says Rady.

“Retirees investors are craving this kind of certainty, and it’s time they are delivered the confidence they deserve.”

———

[1] The highest 12-month bank term deposit was 1.23% at 2 November 2020, according analysis by comparison website Canstar.
[2] Based on S&P/ASX 200 index
[3] Matthews, T., “A history of Australian equities,” Research Discussion Paper, Reserve Bank of Australia. June 2019.
[4] Lowe, P., “Today’s Monetary Policy Decision”, Reserve Bank of Australia, November 3.
[5] Callan Associates, “Risky Business”, 2019
[6] AARP and the American Council of Life Insurers, “How Retirees manage money to make it last through retirement,” 2007.
[7] Based on Allianz Retire+ Powered by PIMCO survey  in May 2020 of 1,007 current and prospective retirees
[8] Based on the Allianz Retire+ ‘Future Safe Caps and Fixed Rates’. Effective from 1/11/2020-30/11/2020.  Caps and Fixed Rates are updated monthly.
[9] Based on an investment in Allianz Retire+ Future Safe where withdrawals above the free withdrawal amount are subject to a market value adjustment. Refer to the PDS for a detailed explanation of fees and costs.
[10] SIS minimum, pre-COVID-19 change to minimum drawdown rate.

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Matt Rady

Allianz Retire+ has announced the integration of its flagship retirement solution, Future Safe to HUB24.

With Future Safe, Allianz Retire+ gives financial advisers access to an Australian market-first solution, designed to safeguard retiree portfolios against equity market volatility and sequencing risk.

Advisers who use HUB24 can now access Future Safe reporting and speciality retirement tools and resources through the adviser desktop. Clients can also view their Future Safe investments alongside other investments on the HUB24 platform, creating reporting efficiencies which support the advice process.

Commenting on the launch, Allianz Retire+ CEO, Matt Rady said: “This inclusion on the HUB24 platform signals a pivotal step in our distribution channel expansion.  We are delighted that HUB24 recognised the growing demand for Future Safe, and we thank them for their commitment to becoming our first strategic platform partner.”

HUB24 Managing Director, Andrew Alcock commented: “It’s critical that advisers and their clients have access to product solutions that can help them prepare for retirement.  We are pleased to be working with Allianz Retire+ to provide advisers who use HUB24 and their clients access to greater product choice to help them achieve their retirement goals. “

Rady added:  “We are keenly focused on expanding our reach to ensure advisers have efficient access to solutions that deliver better outcomes for their clients. It’s exciting to have Future Safe integrated with a market-leading platform that enables the provision of retirement solutions, and importantly, eases the delivery of quality advice.”

Allianz Retire+ Future Safe offers advisers the ability to confidently provide retirees exposure to growth, with the ability to protect the equity allocation from losses.  Investors in Future Safe can choose an appropriate level of downside protection, via a cap and floor strategy. If the linked sharemarket falls, the investment won’t fall below the “floor” selected for that given year.  By limiting investment losses to a “floor”, investors are provided exposure to equity returns up to a corresponding “cap”.

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Matt Rady

Australian Retirees are downgrading their retirement expectations, spending less on luxuries, and are fearful and confused about the safety of their investments.

A new study by Allianz Retire+ found COVID-19 has shaken retiree confidence about the quality of their retirement – and how long their money will last.

Only a third of retirees surveyed feel confident in their financial position. Of those surveyed, 66% do not agree that Australia’s superannuation system will provide them with a dignified retirement.

“COVID-19 is taking a terrible toll on the economic wellbeing of many retirees,” said Allianz Retire+ CEO Matt Rady. “In addition to health concerns about the virus, and not being able see loved ones as much, retirees are yet again suffering from the sharemarket rollercoaster.”

Rady adds: “These results demonstrate that the Australian superannuation system, which is lauded as one of the best systems globally, is not working for a great deal of the people it’s designed for. COVID-19’s impact has exposed shortcomings in retirement product design, access to financial advice and superannuation education.”

Allianz Retire+ surveyed 1,007 current and prospective retirees nationwide to understand how COVID-19 was affecting their lifestyle, investment actions and retirement perceptions. The research extends Allianz Retire+’s ground-breaking “Next Chapter” study from last year.

Rady says the latest findings show COVID-19 has made retirees more fearful of the future. “Our previous research found many retirees were nervous and uncertain about what’s ahead and lacking in investing confidence. COVID-19 is taking that to a new level. Retirees continually tell us they want safe, simple, low-cost retirement products. They want products that give them certainty.  But the investment industry is not meeting that need.”

Three in four retirees are not confident about how long their money will last in retirement, the survey found. When asked about their investments during the COVID-19 pandemic, only 18% felt their investments would be safe in case of economic downturn.

Nearly half of respondents said they were monitoring their investments much closer due to COVID-19. Just under a third of current and prospective retirees surveyed were happy with the Federal Government’s response to COVID-19 policies that affect their retirement.

“Overall, there is an enormous sense of uncertainty and clear dissatisfaction that needs to be urgently addressed if the system is to work as intended. We have a huge opportunity to get the Australian system right and while there are pressing matters to attend to post COVID-19, this is one of them. There’s a real danger here if policy change isn’t swift and imminent” says Rady.

Prospective retirees most at risk

The economic impact of COVID-19 was greater on prospective retirees (within seven years to retirement) than current retirees, the survey found.

About 40% of prospective retirees said they lost money during COVID-19. Just over one in five said their employment status has (or may) change due to the economic downturn.

Falling retirement savings and rising job insecurity is a toxic combination. Around one in three prospective retirees now have more negative expectations of their retirement. And 77% of prospective retirees do not believe superannuation will provide them with enough money in retirement.

“Those nearing retirement have been particularly hurt by the downturn,” says Rady. “These investors tend to have more funds allocated to shares, so have higher susceptibility to market crashes. Typically, they are still working and need that income to build retirement savings.”

Rady says the impact of COVID-19 shows the danger of “sequencing risk” – where the timing of poor market returns can permanently damage retirement savings. “Prospective investors can ill afford to have the share component of their superannuation crushed by market volatility. Some do not have enough time left in the workforce to rebuild their wealth.”

Rady says it is no surprise that around one in three prospective retirees said they would consider an investment product that ‘insured them from market downturns’, such as Future Safe from Allianz Retire +, an innovative retirement income product with in-built protection from sharemarket losses.

“COVID-19 reinforces the need of retirement-savings products that have a low-cost protection mechanism,” says Rady. “As prospective retirees are realising, diversification and asset allocation are no panacea to protect wealth during crises. Retirees need adequate protection on the share component of their portfolios.”

Lack of advice

Remarkably, 79% of retirees did not seek financial advice during COVID-19, the survey found.

Only one in five retirees felt that they had easy access to professional financial advice and approximately a third felt financial advisers were ‘for the rich’.

Almost two-thirds of those without an adviser said they would not use a one because the service was too costly.

“We have to change perceptions of financial advice among retirees and increase access to affordable advice,” says Rady. “The advice proposition is proven to be an integral part of providing individuals with confidence and certainty in retirement. Those who use an adviser told us they feel more confident and secure in their financial position”.

“68% of those who were advised during COVID-19 said they are sticking to their financial plan. That means advice is definitely deterring people from making sub-optimal investment decisions based on fear or a lack of understanding.”

Simplifying superannuation

Superannuation complexity and lack of awareness has seemingly exacerbated the economic impact of COVID-19 on many retirees.

Of those with money invested within a Superannuation Fund, about 70% did not feel well educated about managing their retirement income. Approximately three in five stated they did not know where their superannuation was invested. Further, just a third understood the investment options available to them in retirement.

“The survey shows too many retirees are confused about superannuation, don’t know enough about how their retirement savings are invested, or how secure their money is. 73% did not agree that there were adequate options available to manage their retirement income”.

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