OpenInvest has partnered with a boutique financial advice business to provide its clients with access to four investment portfolios under the firm’s own banner.
OpenInvest head of distribution Ravi Verma said the company was working with Mackay Private to offer a digital investing solution called Mackay Private Online.
The solution will provide access to the portfolios on the OpenInvest platform, which are managed by the Mackay Private team, along with an ongoing feed of educational content, which can be accessed directly from the advice firm’s website.
Mackay Private principal adviser and co-founder Sam Mackay said the online solution was being offered to clients seeking professional investment help, but did not want a traditional bespoke private wealth management service.
“We regularly get referrals via our existing high net wealth clients, usually family and friends, many with much simpler needs than our private client base. Or else they are just getting started on their wealth-building journey,” he said.
“In both cases, the traditional face-to-face, personal advice service may simply not be necessary or economical. Like most wealth management firms, we generally have had to turn away these potential clients.
“Now, with our new digital solution, Mackay Private Online, everyone can find the professional investing help they need. Our minimum investment to get started is only $10,000.”
Mackay Private co-founder Will Mackay said the addition of the online solution created the ability to scale the business and reach younger investors at home in a digital environment.
“In an environment in which young people are being inundated with advertisements telling them that share and crypto trading is fun and easy, we think it’s important that we provide a smarter, proven alternative: multi-asset class, diversified portfolios,” he said.
“The next generation is used to interacting with service providers online, so offering them our digital solution is the logical way for us to reach, build relationships with and serve these clients.”
Verma said more high-end wealth management firms were looking at digital investing solutions to reach younger prospects and clients and to educate them as well.
“With an estimated $1 trillion in wealth moving between generations over the next decade, it’s logical for wealth management firms to be engaging with the next generation now – not after they have built their wealth to what a firm might regard as their traditional threshold,” he said.
“We have designed the solution so that firms are not only managing client portfolios but providing valuable financial education as well.”