GCI has created a separate asset consulting division in response to market demand. Headed up by Alex Funk, the new unit will benefit from the expertise of industry veteran, Keith Robertson, who will be responsible for assisting in structuring the model portfolios and building the client base. Robertson joined GCI at the beginning of March after 10 years at Prudential, where he helped grow the company’s unit trust business by almost R6 billion.
“Keith’s experience and understanding of the investment consulting space, coupled with his commitment to client service, will be invaluable in helping to get this new division off to a flying start,” Funk says.
Robertson says that the reason for splitting asset consulting out of the existing asset management division is primarily driven by changes in the industry, but the move also addresses a distinct gap in the market.
Regulatory changes are being driven by the Financial Services Board’s Retail Distribution Review proposals, which were published late in 2014. These proposals are a big milestone on the Roadmap to Treating the Customer Fairly, which will ultimately govern the regulation of the financial services industry. Given the Retail Distribution Review’s emphasis on improving the service offered to customers and reducing their risk, GCI believes that many financial advisors will opt to outsource the time-consuming and highly skilled task of identifying and managing investments to specialists like GCI Asset Consulting.
“The investment environment is highly complex and, to protect clients, regulators around the world are moving to ensure that asset allocation is handled by people with certain skills,” Robertson says. “We also felt it was important for GCI to separate its new Asset Consulting division from its existing Asset Management business to avoid any conflict of interest.”
Regulation aside, Robertson says that it is difficult for independent financial advisors to access top-flight asset consulting to help them construct the best possible portfolios for their clients. GCI’s new division aims to bridge that gap.
“We will be offering advisors with portfolios under advice in the R50 million and upwards range with a turnkey solution, while bespoke solutions will be available for those with portfolios in the R250 million-plus region,” Robertson says. “I aim to have R4 billion under management by the end of the year, but that may be conservative given that we have already achieved a book of just under R1 billion within the first month of operation. The market demand for this type of service is definitely there, and we are well positioned to provide it.”
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