IPAC Securities has publicly staked its colours to the mast and declared it's more than a traditional research house.
At the recent IPAC Investment Conference general manager David van Schaardenburg and Arun Abey, the executive chairman of IPAC's Australian parent company, talked about the client portfolio management service it is involved in.
In the past IPAC has been considered a research house in the traditional sense, whereby it collected data analysed it, and on-sold the results.
However, as van Schaardenburg says, the term research house is becoming less defined now and is used rather loosely.
He says the research industry is evolving and it is not immune from the rationalisation and competitive pressures faced by other parts of the financial services industry.
For future sustainability research houses either have to be a rating service or develop value-added services.
Rating companies need a mass market and need to be part of a global network to survive, he says. IPAC, while it will continue with its traditional research is embracing the value added option through its client portfolio monitoring service.
The move aligns IPAC in New Zealand more closely with its Australian parent company, which offers such a service.
Abey told advisers at the conference that historically the average client's portfolio has under-performed, and that the old model of the adviser doing asset allocations and fund manager selection is out-dated and doesn't work.
He says the adviser's role now is much more focussed on client relationships and establishing their needs and a suitable risk budget, along with designing a tax strategy.
"The adviser's is to set client expectations and establish a position as a trusted adviser."
In this model IPAC develops true to label portfolios that suit different risk budgets and provides the portfolios through a variety of tax structures.
In New Zealand IPAC has been involved in New Zealand Funds Management's Strategic Investment Service, for a number of years.
IPAC does the investment strategy and fund manager research for the service, which has six portfolios to cater for different risk profiles.
Besides the Strategic Investment Service, IPAC is also involved in the First Master Fund and a customised service for Medical Assurance. It is now seeking to expand its client base in the value added service area.
The company has reviewed its traditional research operations and is "committed" to that business.
"Advisers can choose what they want," van Schaardenburg says.
He sees the client portfolio management service as a practical point of differentiation for IPAC. By being involved in the investment arena and implementing "the fullness of its views" it has a better understanding of issues facing investors and advisers than if it adopted a purely theoretical or academic approach to research.
IPAC Securities has publicly staked its colours to the mast and declared it's more than a traditional research house.