Digital investment platform OpenInvest has signed a new partnership with Victorian accounting and financial services firm hmh Advisory to offer a low-cost online investing solution, hmh onlineinvest.
The newly launched service provides investors with access to four portfolios tailored to various risk profiles – balanced, growth, high growth and ethical focus – with an initial investment threshold of $5000.
Hmh Advisory managing director Kristian Lunardello said the launch of the solution was driven by the firm’s commitment to assist existing clients who want professional portfolio management, but do not require comprehensive personal financial advice services.
“Since our founding over 45 years ago, hmh Advisory has sought to help our clients to successfully manage their businesses and feel confident about their financial future. That includes helping business owners invest their hard-earned money to provide for themselves and their family’s future,” Lunardello said.
“However, not every client wants or needs our traditional personal advice experience. Our new online solution means we can give our clients a choice in how they wish to access our wealth management expertise.”
Hmh Advisory director Eli Staub acknowledged the challenges faced by many young adults in obtaining personal financial advice and noted the firm’s introduction of the new service may appeal to the children of its existing clients.
“We are very aware that personal financial advice is beyond the reach of many young adults due to the heavy compliance burden on the industry and resultant fee structures,” Staub said.
“We can now let the children and other relations of our clients know that they have a simple and lower-cost avenue to access our wealth management expertise to help them invest in a sensible way.
“There’s a right way and a wrong way to invest, and if more young people can learn about the benefits of investing via professionally-managed, diverse portfolios – rather than trading – the better.”
OpenInvest head of distribution Ravi Verma noted the partnership is well timed as a growing number of young Australians are now getting involved in investment and wealth management decisions.
“We are in the earliest stages of the greatest intergenerational transfer of wealth in history, with $3.5 trillion of wealth passing through the generations over the next two decades,” Verma said.
“Strategic wealth management firms are reaching out to young people now and not waiting until they meet their criteria for serving high net worth clients via personal advice.”