Selfwealth expands into managed investment options
Following its acquisition by wealth manager Syfe last year, Selfwealth is set to introduce three new managed investment options, signaling a shift from an online brokerage to a full wealth management service. This development is expected to be rolled out in the coming weeks.
Rising Advice Costs Drive Self-Investment Trend
Citing the increasing cost of professional financial advice, Selfwealth highlights a growing trend among Australian investors to manage their investments independently. Data from Adviser Ratings reveals that the median annual advice fee has surged from $2,510 to $4,837 since 2019.
Consequently, the number of Australians seeking financial advice has declined from 2.62 million to 1.92 million during the same period. Selfwealth by Syfe anticipates that this shift will transform the way Australians approach wealth accumulation, with a greater emphasis on professional investment management without the high costs associated with traditional advice.
With now just over 10 per cent of adults accessing advice, Selfwealth identified an opportunity, viewing managed portfolios as a complement to self-directed investing. Samantha Horton, head of Australia for Selfwealth and group COO of Syfe, commented, “Australians are being forced to choose between doing everything themselves or paying for high cost, traditional wealth management. We don’t think they should have to make that trade-off.”
To that aim, Selfwealth is looking at the cash reserves of Australians, noting close to 70 per cent of adults hold net wealth above $140,000 with 45 per cent of that wealth in liquid investable assets, according to the platform. Selfwealth said it wants to “put cash to work”, with three different offerings.
The first offering, “Cash+”, targets returns via a portfolio of ASX-listed cash and short-duration credit exchange traded funds (ETFs). The second, “Income+ Defensive”, is an income-focused portfolio with defensive assets, designed for investors prioritizing stable income and reduced volatility.
The third portfolio, “Income+ Enhance”, presents a higher-risk, long-term option with dual income and growth objectives. Horton stated, “Today we’re putting a stake in the ground with a clear ambition: to become the home of Australia’s smart investors. We’re broadening beyond online brokerage into a holistic wealth platform.”
Ensuring accessibility to invested funds remains a key priority. In contrast to traditional managed investments that often impose restrictions, all three products allow members to withdraw their money without lock-in periods. The platform plans on developing different offerings, teasing a future move to additional asset classes, including equity and growth-focused strategies.
