Investment Advice

The role of a client advocate in building an investment portfolio

13 April 2022
5 min read

13 April 2022

Whether you are nearing retirement or simply need to secure your future, an investment portfolio is a prudent element of a wealth management strategy that you can benefit from. Simply put, an investment portfolio is a collection of all your invested assets. These could be your stocks, bonds, money, or mutual funds.

A successful investment portfolio requires well-thought plans and strategies to increase profits and manage risks associated with different types of assets. It also requires a good support system to inform and protect your rights as an investor, and that's where a client advocate comes in.

This guide discusses the role of a client advocate and how you can stand to benefit from their input when building an investment portfolio. Keep reading to learn more.

What does a client advocate do?

A client advocate plays a very important role. As a voting member of the Investment Committee (IC), their sole purpose is to ensure that any investment decisions made by the IC are in the best interests of investors.

When it comes to making investments, your client advocate is conversant with the different types of investments, investment portfolios, and investment rights. In short, a client advocate needs to be commercially astute and have an in-depth knowledge of investment matters.

As such, a client advocate can easily recognise if discussions are being held on issues that may not be in your (the investor) best interests and can help ensure these are resolved before any decisions are made. So, having a client advocate is like having a backup support system, which always prioritises your interests over all others.

With more than 30 years in the industry, Findex has developed an eight-point approach to Client Advocacy that helps us to protect and grow our clients’ portfolios:

Wealth management 9.1.png

Wealth management 9.2.png

How does a client advocate influence investment portfolio management?

A client advocate works closely but independently with the Investment Committee. They act as your voice at the committee, helping to ensure that the other committee members are working for your benefit too.

Therefore, the advocate looks at the decisions made by the committee's other members about asset allocation and portfolio constructions and speaks on behalf of you. If they deem that the decisions are not are not in your best interests, the client advocate has the right to refuse them and provide other helpful recommendations.

Findex’s client advocate has veto rights which ensures our clients' needs are met. If a decision is not suitable for the client, the Findex client advocate highlights it to ensure the client gets only what's right and in their best intertest.

How does a client advocate add value to investment portfolios?

Of course, you can create an investment portfolio without involving a client advocate. But, what exact value can an advocate bring to your investment decisions? Is a client advocate worth it?

Yes, a client advocate plays a vital role in standing by you- the investing client and adds value to your investment portfolio.

Here's how a client advocate adds value to your investments:

A client advocate provides an independent client view- an independent view means free from manipulation, action, or judgment. A client advocate is there for you, and the investment committee cannot make any financial decision without the view of the advocate (which is also yours).

This can help give you peace of mind because you know someone is representing you well.

Also, a client advocate helps to ensure you get transparent information of the decisions made by the investment committee. Investments require a high level of trust and transparency, so it's an added advantage for you to know there is someone advocating just for you.

Overall, a client advocate plays a vital role in ensuring all clients have access to the information about our products and services and IC decisions which can help clients make decisions about how to best achieve their personal goals from their investments. Basically, a client advocate’s aim is to ensure clients are happy, satisfied, and informed. This, in return, improves the investment experience and adds value to the clients' investment portfolios.

How a client advocate helps keep your investment portfolio in top shape

A client advocate carries out the following tasks to help ensure your investment portfolio is successful:

  • Provide clients with an independent voice – during IC meetings, a client advocate will always be there presenting your view to help ensure everything is done in your favour.

  • Ensure there is a healthy debate on every decision made by the Investment Committee - the client advocate debates from the client's perspective

  • Utilise their veto rights wisely to help ensure that decisions made by the committee are client-focused.

  • Ensure transparent and timely correspondence exists between the clients and the investment committee.

When you invest with Findex, you engage with specialist teams, who enhance the client value proposition at every step of your wealth journey. We provide you with an end-to-end wealth management and investment solution that helps maximise the likelihood of achieving your goals with the minimum amount of acceptable risk for your individual circumstances. And the client advocate is an essential piece of that process.

With $17bn of assets under advice and one of the largest Managed Discretionary Accounts (MDA) in Australia, the Findex Investment team has consistently delivered returns for our clients that have outperformed the benchmark through Findex MDA portfolios.

In an investment environment of low returns, working with a team of experts, who each have their own area of deep specialisation, is in the best interests of any investor looking to generate genuine returns over the long-term.

If you’re ready to get started on your investment journey, submit our contact form and one of our team will be in touch.