Colonial First State puts focus on managed accounts with CFS Edge launch

Developed in collaboration with global wealth management platform provider FNZ, CFS said the new platform will “transform the way advisers can service their clients through features not before seen in the Australian market”.

CFS Edge will enable digital adviser workflows, advanced data analytics, an integrated app store, and analysis tools for licensees, advisers, and members.

“CFS Edge is the first major new platform in the Australian wealth management sector in almost a decade,” said Kelly Power, chief executive of Colonial First State Superannuation.

“It utilises the best global wealth management technology and has been uniquely co-developed with financial advisers from the very start.”

The wealth management company added that through open APIs and real-time two-way data integration, advisers can integrate CFS Edge with their preferred technology partners.

“At CFS, we’re thinking differently about how we make sure advisers have access to the best capability available anywhere in the world,” said Ms Power.

“Our approach is to have an open platform that allows for seamless, secure integration with leading advice technology providers. This enables advisers to set up new clients in seconds, eliminates the risk of errors, and significantly improves the user experience to give advisers more time to focus on their clients.”

Speaking with ifa, Bryce Quirk, group executive – distribution at CFS, said: “This is a really momentous time for CFS with us launching CFS Edge to the market.

“It is our first major transformational delivery as a result of our standalone business. It’s a key core component of our growth plans and our $430 million investment that’s been made back into CFS. We see this as really the first major new platform release in almost a decade.”

While CFS said it has plans to expand integration of CFS Edge with other technology providers by giving fintech providers the ability to access a developer portal to build their own connections on the platform, it already has real-time two-way integration with Iress Xplan and Adviser Logic.

The business said that it worked with advisers in the development of CFS Edge, leading to a flexible, modular approach that can be configured around the preferences and business needs of the user.

“Through the build process, we involved to 12 or 14 advice practices across the country from the very start of the design phase,” Mr Quirk told ifa.

“So, they’ve been on the journey with us for the last 18 months and we’ve certainly taken their feedback not only in how we designed and built Edge, but also as we’ve tested the usability in the last three or four months, we continue to get their feedback and improve and enhance the experience.”

This is also an area that was helped through the partnership with FNZ, which CFS said allowed access to an even wider range of investment capability and reporting functionality.

“Flexibility and configuration are at the core of CFS Edge. The platform gives advisers extensive control and allows for a level of personalisation not seen in the Australian market,” added Ms Power.

Putting managed accounts at its core

CFS said that CFS Edge is the first major wealth management platform with “managed accounts at its core”. The platform does this, according to CFS, through advanced modelling tools designed to support deeper analysis and more granular comparisons and portfolio analysis.

“CFS Edge is a full-service wrap platform from day one, offering market leading super, pension and investments capability with advanced managed accounts at the core,” said Ms Power.

“The quality of the platform and our service experience is paramount. We have undertaken extensive market testing at every stage and are delighted to now launch CFS Edge to the whole market.”

Mr Quirk added that CFS has had the benefit of a much more mature managed account market than what was available previously.

“Portfolio construction and managed accounts in particular are at the heart of how the platform operates and being able to tailor that to multiple business models – whether it’s through MDA, whether it’s through SMA, whether it’s through model portfolios – so we took that lens to make sure that we can deliver that,” he told ifa.

“But then also there’s multiple stakeholders with managed accounts, so there’s the adviser themselves, there’s the client, but then there’s also asset consultants, there’s licensees and other contributors to the selection process to run a managed account.

“We took all of those perspectives in what we designed to make sure that they had their own experience that met their role in that process. So, what a portfolio manager does is quite different to what the advisor does, and so they needed different tools and desktops to execute on that.”

On the client side, Mr Quirk told ifa that clients can access either through app or desktop technology with multiple factor authentication.

“There’s a personalisation ability where the client can change what they see on the screen and the advisers can see that at the same time as well. It also has a screen sharing mode where when an adviser goes into Edge on the desktop themselves, they can click a single button that then shows them exactly what the client can see when the client is in their account,” he said.

“We think it’s really important that the engagement and experience between the adviser and the investor is really close given the adviser is engaging with them directly, but as you would expect, all of the benefits that we’ve provided to the adviser would also be in a more streamlined version. They don’t have as much information at their fingertips as an adviser.”

There are also plans for additional features to be released shortly, such as ESG preferences and capabilities that will further expand the range of available investment options and provide greater functionality for advisers.

Tim Neville, CEO of FNZ APAC, said: “FNZ is delighted to have delivered the Edge platform in partnership with CFS. Our partnership with CFS is truly exciting, leveraging their market-leading service, expertise, and reach.