With more and more firms pivoting to focus on high-net-worth clients, Daniel Harris, head of Melbourne private wealth firm GWPO, has shared his three tips to working with this client base.
GWPO was set up earlier this year as a new division of Melbourne-based advice firm Grimsey Wealth which has been operating for 43 years. The GWPO business will act as a private office to elevate the firm’s service offering for these wealthier clients, offering services such as tax advisory, risk protection, insurance, property advocacy and lending.
The decision to launch a dedicated private office was driven by the rising volume of assets held by its clients, who are primarily all working in the medical profession.
Speaking to Money Management, managing director and principal adviser Harris, discussed what he believes HNW clients value from their practice.
“I would say they value whole-of-wealth reporting, strategic advice and making informed, and well-researched decisions is underrated. Leading with that sets you apart from other firms.
“Being part of a community with other likeminded households and then having access to best-of-breed investments.”
For example, GWPO uses Drummond as its research and asset consultant for portfolio construction whereas the wider Grimsey Wealth business uses Drummond’s separately managed accounts (SMAs).
“I strongly believe you need to be really sharp on the strategic advice and understand their whole-of-wealth position so that clients can make critical decisions but also provide access to institutional-grade investments.
“If you are a single adviser, it’s impossible to have all the research you need to make a high conviction decision on pc/ compared to an industry fund, for example, who have a team of 30 analysts. The change in the industry has brought down the cost and barriers to entry to access institutional-grade portfolios via asset consultants so that’s a big change.
“That’s come out of the US. If you went to a private bank, you would talk to an adviser, but they wouldn’t be the one putting the portfolio together then, they would have a team running that model in the background. Asset consultants have thought that concept to the mainstream.
“Using Drummond gives us access to institutional-grade portfolio management, that’s their work, day in and day out, and it means we know our clients have best-of-breed investments and we can focus on providing the advice.”
The firm also has a partnership with fintech provider HeirWealth where its technology gives clients the ability to view their wealth all on one page as well as include sentimental items or collectibles. This has helped the firm to win client relationships purely on the basis of allowing them to view their finances in this way, Harris said.
“Clients say they’ve trying to do this for years, it’s the sleep-at-night factor, there’s so much going on in their life that it can be hard to wrap their head around their total position.
“To be able to look that up or to call their adviser and ask what would happen if they sold an asset and for the adviser to be able to show how it would affect their long-term financial position, it gives them that confidence.”
Last week, Money Management covered how another Melbourne UHNW advice firm has separated from Stellan Capital and set up as its own family office, Cetina Family Office .
Cetina may have changed its name but founder Ivan Rados said the business proposition will remain unchanged with the firm providing a ‘hyper-personalised service’ to its clients with services such as inbound due diligence support, cashflow and bookkeeping and administration as well as the traditional portfolio construction.