Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
Sequoia links up with SQM Research for ratings partnership
Sydney-based advice and technology group Sequoia Financial Group has forged a strategic partnership with ratings agency SQM Research in a high-profile vote of confidence for the provider.
The ASX-listed Sequoia, with over $10 billion in client funds under management, recently agreed to incorporate all the funds and portfolios rated by SQM on to their approved product list (APL), across all asset classes.
The move is significant for SQM, the firm founded in 2007 which is most famous for the property information it provides to consumers, investors and media, and in particular the data it provides around vacancy rates across the country.
In recent years the research firm has extended its reach around shares and managed funds, with ex-Van Eyck research manager and deputy CIO Rob de Silva coming on board as head of fund manager research in 2014. The research group now provides ratings, sector reviews, fund research and quantitative analysis for over 10,000 funds – though Sequoia will be introducing only a fraction of that to its adviser base.
“SQM Research are now providing quality research on well over 400 strategies across all the asset classes and are the only major research house covering the growing range Multi-Asset [separately managed account] solutions,” commented Sequoia chief executive Gary Crole (pictured). “This has made them a natural provider to help us meet the needs of our advisers.”
According to SQM founder Louis Christopher, the tie-up with Sequoia gives the research group another significant mandate in the medium-to-large licensee space.
“We are very excited to broaden our relationship with Sequoia given their position in the market,” Christopher said. “It’s great to see our research being utilised by another of the major advice providers in the market.”
Christopher added that the SQM business model is conflict free, and allows them to rate multi-asset SMA portfolios without undue influence.
“Our research is now accepted by most of the largest advice firms and platforms. As a pure research and data provider, we will continue to focus on providing the best research to our clients, without being distracted by conflicting interests,” he said.
