CFS unveils ‘game-changing’ managed accounts offering

Colonial First State (CFS) has unveiled what it has dubbed “the next evolution in managed account construction” as part of its just-released wealth management platform, CFS Edge.

Set to be available later this year on the newly launched CFS Edge, which made its official debut yesterday, the Accelerate Series promises wealth advisers and managers access to a suite of “highly rated and frequently used investment options at a significant discount”.

“The Accelerate Series is a game-changer,” said CFS group executive for distribution Bryce Quirk.

“CFS is revolutionising managed accounts by offering advisers and clients access to no percentage-based administration fees and doing away with inefficient and clunky rebates,” he said.

“Client funds are always invested, and cash statements are free of confusing rebate arrangements that otherwise need to be explained to clients.”

Quirk added that CFS will also waive the percentage-based administration fee on the CFS Edge, though this is contingent on the managed account being comprised only of Accelerate investments that are provided through the platform.

According to CFS, the Accelerate Series promises a full-service solution designed for a diverse array of clients – from younger accumulators to high-net-worth individuals.

CFS Edge debuts

Making its official debut yesterday at a launch event in Sydney, CFS Edge has been touted as the “most contemporary wealth management platform in the market”, and the first major platform to provide “managed accounts at its core”.

The platform, regarded as the first major platform release for Australian wealth managers in over the decade, was co-developed by wealthtech developer FNZ.

“The breadth and depth of CFS Edge will give advisers the ability to blend simple low-cost solutions with the most sophisticated investment options in a single account, allowing them to service different client segments from a single platform,” Quirk said.

On the personalisation end, Edge also boasts advanced modelling and data analytics tools, supporting wealth managers and advisers with increased customisation and granularity options for portfolio comparison and analysis. As well, the platform provides an integrated app store and analysis tools for licensees, advisers and members.

CFS Edge also features predictive insights and alerts for advisers, revealing new advice and growth opportunities for clients and potential areas of inefficiency.

Nested managed accounts are also a key feature of the platform. This enables advisers and their clients to hold a separately managed account (SMA) inside other portfolio types, such as another SMA, Managed Discretionary Account (MDA), or Model Portfolio (MP).

CFS Edge customers will also have access to international equities across 15 stock exchanges, including the New York Stock Exchange and the NASDAQ, as well as 10 currencies including US dollars, Euros and Pounds Sterling.

Customers can hold multiple currency wallets to meet their needs, preventing the need to cross back to Australian Dollars to trade in foreign markets.

Equipped with Open APIs and real-time two-way data integration, the platform can be integrated with advisers’ preferred financial planning software, including Iress Xplan and AdviserLogic.

Additional features, including ESG preferences, are expected to be released over the coming weeks, alongside an expanded range of available investment options.