Dion Hershan from Yarra Capital Management speaks to James Dunn at The Inside Network’s Equities & Growth Symposium in Melbourne, VIC on looking beyond the old favourites and backing Australia’s future. The Inside Adviser
Marcus Guzzardi from Cooper Investors speaks to James Dunn at The Inside Network’s Equities & Growth Symposium in Melbourne, VIC on conviction and quality: What drives selection in global smaller companies. The Inside Adviser
The hidden engine behind advisory growth
As advisers contemplate how to grow their businesses, portfolio construction is emerging from the background to take a frontline role. When implemented with discipline, it enables advisers to scale efficiently, deepen client trust, and differentiate their offerings in an increasingly competitive environment.
According to Investment Trends (2023), 68 per cent of Australia’s fastest-growing advice practices attribute their success to structured investment solutions such as model portfolios and SMAs. These frameworks streamline advice delivery, enhance portfolio consistency, reduce compliance complexity, and strengthen client engagement. The outcome is greater client retention, higher funds under management per adviser, and scalable recurring revenue all of which enhance business valuation. Practices with institutional-grade investment processes are more attractive to acquirers and tend to command higher earnings before interest, tax, depreciation and amortisation (EBITDA) multiples during succession planning or sale. In other words, robust portfolio construction doesn’t just benefit clients, it materially strengthens the adviser’s bottom line and long-term equity growth.
Clarity builds confidence, and confidence drives referrals
Clients today expect more than generic investment advice. They want portfolios that are tailored to their goals and responsive to market conditions.
Throughout 2023 and 2024, Atchison implemented a series of tactical portfolio adjustments in response to persistent inflation, rising interest rates, and ongoing global economic uncertainty. These adjustments included selective over- and underweights across global and Australian equities, real assets, alternatives, floating rate, and long-duration bonds, in alignment with our market views. These decisions were guided by our Strategic Asset Allocation, Tactical Asset Allocation, Economic Regime Framework, and Key Investment Decision-Making Framework, enabling advisers to offer portfolios that were more resilient, income-generating, and attuned to market conditions, ultimately enhancing risk-adjusted returns for clients.
Importantly, CoreData’s 2023 Advice Intelligence Study revealed that 74 per cent of clients who understood the structure and purpose of their portfolios were “very likely” to refer their adviser, compared to only 41 per cent who did not. This demonstrates the commercial power of clarity when clients understand their portfolios: they are more confident, more loyal, and more likely to advocate for their adviser.
Scale, efficiency and compliance through model portfolios
Beyond the client relationship, structured portfolio construction unlocks significant operational leverage. By adopting SMAs, MDAs, or model portfolios, advisers can move from managing bespoke individual portfolios to delivering consistent, research-backed investment strategies at scale.
The benefits are tangible. According to Business Health’s 2022 Future Ready Report, advice practices using model portfolios manage, on average, 38 per cent more clients per adviser. This operational efficiency translates into more time for strategic advice, deeper client engagement, and the ability to grow revenue without proportionally increasing overheads.
In today’s regulatory environment, model portfolios also simplify compliance. With heightened scrutiny from ASIC on best-interest obligations, product governance and evidentiary standards, advisers need to be able to justify portfolio construction decisions with a clear, repeatable process. Atchison’s institutional-grade portfolios, supported by detailed economic rationale and ongoing review, give advisers the confidence to meet these expectations with ease.
Better portfolios, better outcomes, better businesses
High-quality portfolio construction is a proven driver of both client outcomes and business growth. Morningstar’s 2023 “Value of an Adviser” report estimates that more than 2 per cent of annualised client value is attributable to sound portfolio design, risk management and behavioural coaching – all of which are embedded in a disciplined portfolio process.
The broader shift is well underway: SMAs now represent over $150 billion in Australian funds under management (IMAP/Milliman 2024), more than tripling since 2018. Advisers using SMAs report stronger retention, higher client wallet share and more consistent investment outcomes across their client base.
Conclusion
Portfolio construction is no longer just about selecting asset classes, it’s about building a business that is scalable, compliant, and differentiated. At Atchison, we partner with advisers to implement research-driven portfolio solutions that deliver both investment integrity and commercial leverage.
In an industry where differentiation is hard to earn and easy to lose, well-communicated portfolio construction delivers the clarity, consistency and conviction that clients value most. For advisers seeking to future-proof their practice, deepen client relationships, and grow enterprise value, portfolio construction is no longer just a technical tool – it’s a strategic advantage.
