After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
While known for being the flagbearer for financial product providers, the Financial Services Council is now making serious inroads into the financial advice sector.
In conversation with Troy Armstrong, Koda Capital
Troy joined the Koda Capital team in late 2019 as an Adviser and Partner, but brought with him extensive experience across self-managed superfunds, trusts and companies, which allowed him to quickly cement his position within the independent wealth management firm based in Melbourne.
While he does have an impressive history of positions among some of the most respected firms including Escala Partners, ANZ, and Akambo Private Wealth, like many young Australian men he initially thought playing AFL was his calling. After the awakening, he went on to study myotherapy before very quickly realizing his future was in relating with people, with a Diploma of Financial Planning soon following.
Completing his degree and having to start at the bottom of the ladder, Troy took his first job for a financial planner, answering phones. With the tenacity and loyalty, he is so well known for, he didn’t stay answering phones for long before building his experience and knowledge within the industry.
Gaining as much experience and knowledge as possible, and really figuring out what aspect of investing was of most interest, a stint at ANZ made clear it wasn’t banking. Moving back to Melbourne from the Gold Coast and straight into the boutique wealth management space.
Using past experience in his current role at Koda Capital, Troy has a particular focus on two key areas – transparency and capital preservation. Taking the time to realise that realistically if something is too good to be true, 9 times out of 10 it is and being transparent with the advice given. The latter comes from seeing many firms such as Southern Capital going under and of course the fallout from the GFC.
Koda Capital
With a portfolio of some high-quality philanthropic funds alongside your business owners and professionals, Koda Capital structures and focusses on the ultra-high network space. When Covid hit, Koda Capital like the rest of the world had to pivot and take the time to think about how they were doing things.
‘We were lucky and actually pretty well set up to be 100% remote anyway, so the doors closing especially in Melbourne didn’t cause too much of a disruption’. Due to this Troy also sees permanent changes occurring to the general office layout not only for Koda Capital but for the entire industry, ‘the five day work week in the office could be gone which will also decrease the office spaces growing, some offices while may not close entirely, you won’t see them expanding into larger spaces’.
Koda Capital also took the opportunity to consider where they are investing geographically. They are very much focused on global markets, understanding that at the end of the day Australia is a relatively small country, so the need to invest elsewhere is pressing. In Troy’s opinion the need to be exposed offshore is now a must, especially with the drop in dividends and the drop in the allure of franking credits.
Advice for your younger self
‘Go somewhere that you will get a lot of exposure to clients, day in and day out’, You may feel like you are swimming in the dark at times, but nothing is better then gaining as much experience and knowledge as possible. This advice sure seems to be paying off for a young leader of the financial advice industry.
