Investment manager announces new solution to tackle advice gap

AZ Sestante has announced a new digital investing solution aimed at helping advice and wealth management firms to address "the growing advice gap".

The specialist investment manager said the new solution, Sestante Invest, gives investors access to six investment portfolios that it manages and provides clients with regular updates explaining the reason behind the portfolio management decisions, as well as financial literacy and wellbeing content.

AZ Sestante's head of distribution and implemented consulting Andrew Davies said the launch of the solution comes on the back of demand from their client firms for professional investing help from those who are not yet in a position to access firms’ traditional higher cost bespoke personal advice services.

“Our client firms are dealing with issues that are consistent across the Australian financial advice landscape: as the cost of delivering ongoing personal financial advice has shot up and large numbers of advisers have left the industry in recent years, it means that increasing numbers of people are priced out of this service — what is generally referred to as the 'advice gap'," Mr Davies said.

“Now, with the launch today of our new digital solution, Sestante Invest, our client firms are able to help a much broader audience, as the minimum investment to get started is only $25,000."

Sestante Invest is backed by Melbourne-based fintech investment platform, OpenInvest; CEO and co-founder Andrew Varlamos said the company is proud to partner with AZ Sestante for the solution.

“With an estimated $1 trillion in wealth moving between generations over the next decade, it’s logical for progressive wealth management firms to be reaching out to help the next generation now — not after they have built their wealth to what a firm might traditionally have regarded as their minimum threshold,” Mr Varlamos said.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.