Salt eyes advisers

Salt Funds Management is to make a play for more adviser relationships.

Wednesday, September 2nd 2015, 6:00AM

by Susan Edmunds

The firm, which manages two major mandates for BT and AMP Capital, offers three funds for advisers to distribute to clients: its Long Short Fund, NZ Dividend Appreciation Fund and Salt Listed Property Fund.

Chief operating officer Anthony Sowerby said the number of advisers dealing with Salt at present is small.

But the company has bedded down its processes and systems, is confident of how it is catering for its main institutional clients and is now focusing on its next step.

This is likely to involve attempts to engage more heavily with advisers.

“We can now look to see where we want to go next, what’s our growth strategy going forward? You’ll probably see us being a little bit more out in the market with advisers,” he said.

He said the firm was ideally looking for intelligent advisers who had experience with the market, who understood Salt’s product set. “People who recognise it’s not about selling a product.”

Advisers who understood the firm’s investment solutions and how they would be expected to perform would be able to front foot conversations with clients through periods of market volatility, he said.

“It’s a really particular role, the advice piece is so important, that being able to communicate back to the retail investor. I think advisers downplay the real skills they have, that communication piece. There are plenty of studies out there that show the most value-add gets done at the asset allocation point and getting people to stay the course. The amount of value that gets added in the long run through alpha while worthwhile is not to the same degree as asset allocation decisions. Getting clients in the right mix of assets and getting them to stay the course through rough times, that’s where a lot of value is.”

Salt could work with adviser businesses of any size, he said. “Intermediated retail is how we see us plugging into this area, it’s getting the right people to do the right job.”

Tags: financial advisers Salt AM