1. Building the Swiss Global Investment Proposition
PRESENTED BY
Rebecca Murphy
AUGUST 2017
Praemium Limited
ACN:

2. praemium – provider of technology solutions for adviser businesses
Cumbria Wensley Mackay SIPP
Founded in 2001, now with 9 offices and over 200 staff
Over 700 clients (including some of the world’s largest financial institutions), covering $80 billion in assets
Serving financial advisers, financial institutions, stockbrokers, investment managers and accountants
Proprietary technology
London Praemium UK platform
Armenia Software development hub
Jersey Praemium International platform
Hong Kong Praemium Asia
Shenzhen Wealthcraft CRM development hub
Coventry Plum Software
Dubai International sales hub
Melbourne Praemium Group Head office

3. Why choose praemium as a technology partner?
Provider of ‘end-to-end’ technology and investment services for adviser firms
Proprietary technology supports:
Marketing and lead generation
Advice and administration
Buying, selling & managing your clients’ investments
Regular and efficient communications with your clients
Clear and focused business model
Our solutions are designed around the specific needs of financial advisers and their clients.
We get to know your business and requirements before proposing a solution.
Client centric
Over 10 years experience in the international markets.
Data feeds to all major product providers
One of the few established international custody & execution platforms (launched in 2012).
We understand the offshore adviser market

4. The evolution of financial advice
‘The man from Pru’
£1 a week into a savings plan
Recorded in a savings book
Open Architecture
Unit Trust
Personal Equity Plan (PEP)
Insurance Policies
Endowment Mortgages
Fund Supermarkets
Insurance Polices
Government sponsored pensions revolution:
contract out of the company pension
boost returns by investing in a personal pension
loosely based on ‘stock market returns’
Saving plans
With profit bonds
Rise of the platforms
UK Platform Assets
2000: £0bn
2010: £230bn
2016: £390bn
Asset Allocation
Diversifcation
A Post RDR World
Commission
Trail
Rebates
Fees
Transparency
Qualifications
Independence
‘Planning’ not ‘product’
However there was much disappointment when the savings plan was cashed in – The NET RETURN was very poor as the money invested needed to pay for:
the man to collect the premiums
the local office overheads
policy charges & commissions
Pre 1980
Pre 1980
1980’s > 1990’s
1980’s > 1990’s
1990’s > 2000’s
1990’s > 2000’s
2000’s > 2012
2000’s > 2012
2012 > 2017
2012 > 2017

5. The key disruptors facing adviser businesses
Advances in technology
Regulatory change
Political or economic agenda

6. St Peter’s Square
2005
2013
…The same scene

7. Reactive Proactive 2 1 1 2 3 How to approach change
Only 30 of original FTSE100 companies in 1984 are still on the list today in 2017 2
The single biggest mistake someone running a business can make is not planning to change at all 1
Reactive
Proactive
Spend time working ON your business not just IN your business 1
Make Change: Business As Usual 2
Get: Faster, Better and Cheaper to address the disruption 3

8. What clients really value? Where advisers spend their time
What clients value
Research indicates that Planners spend an enormously disproportionate amount of time early in the relationship particularly around Financial Data gathering and analysis, plan preparation, implementation and admin and product advice.
When we then overlay where the clients actually perceive value in the relationship there’s a noticeable misalignment
By continuing to focus our client relationships around products and investments we’re driving their expectation that the relationship is based around product performance, a situation which is unsustainable particularly given the current market volatility.
Do you think client’s really want advice on superannuation, insurance and investments?
What they really want is for Planners to help them to fulfil their Lifestyle goals.
Financial data gathering
Data analysis
Plan prep
Implement & admin
Product advice
Present plan
Review & ongoing service
Relationship management
Source: Cerulli Associates
FPA Principal Member Survey.

9. Why clients leave their advisers
13%
Investment
Performance
87%
Poor Service
Relationship
Source: Russ Alan Prince - The Millionaire’s Advisor ™

10. Build your own financial planning & wealth management platform
CREATE YOUR
OWN
PLATFORM
CONTROL
YOUR ADVICE PROCESS
DEFINE
YOUR
PROPOSITION
EXECUTE
EFFICIENTLY
CUSTODY & EXECUTION PLATFORMS
PRACTICE MANAGEMENT
/ CRM
FINANCIAL PLANNING
INVESTMENT PROPOSITION
ADVISER PORTAL
INVESTOR PORTAL
TAX / PRODUCT WRAPPERS
REPORTING
COMMUNICATE EFFECTIVELY

11. How can the right technology build value for your business?
Helps deliver better
client outcomes
Allows efficient and targeted marketing
More time to spend with clients
Reduces cost of delivering advice
Increases operational efficiency and reduces costs
Improve communication with your clients
De-risk your business
Creates scale

12. Building the Swiss Global Proposition
Bespoke Advisory Service
Legacy or new Client Portfolios that cannot be transitioned or are invested in assets outside of the SG Investment Services
Legacy Book
Work with advisers to build an individual transition plan or Clients stay invested in bonds – “Bespoke Advisory Service”
OMI
Hansard
RL360
STM
Transition Mgt Plan
Swiss Global CRM Advice Platform
(WealthCraft)
Providers & Wrappers
OMI
Hansard
RL360
STM
Swiss Global Trustee Service
Adviser Fee: 1.00%
Bond: 1.00%
C&E: 0.20%
Swiss Global Dynamic Advisory Service
Adviser Fee: 1.00%
Bond: 1.00%
Platform fee: 0.25%
Swiss Global Wealth Management Proposition
ADVISORY SERVICE
DISCRETIONARY
“Core”: Multi-asset funds
“Satellite” funds
“Structured Products”
Advisory risk graded model portfolios“
Swiss Global Models
Range of DFM model Portfolios

13. Building the Swiss Global investment proposition
PERSONALISATION
ADVISER
MANAGED
PERSONALISED
PORTFOLIOS
Investor
centric
ADVISER
MANAGED
MODEL
PORTFOLIOS
SWISS GLOBAL MODEL PORTFOLIOS
DFM MODEL PORTFOLIOS
portfolio
centric
product
centric
manual
Operationally
Unconstrained
SCALABILITY

14. Stage 1: Swiss Global Dynamic Advisory Service
Swiss Global Investment Committee
SELECT
MONITOR
REVIEW
REPORT
Swiss Global Client Risk Assessment
DEFENSIVE
CAUTIOUS
MODERATELY ADVENTUROUS
BALANCED
VERY DEFENSIVE
ADVENTUROUS
VERY ADVENTUROUS
Swiss Global Dynamic Advisory Service
Multi Asset funds
Satellite Funds
Structured Products
60% +
Up to 40%
Up to 20%
Portfolio Guidelines

15. The starting point – your client’s attitude and capacity for risk

16. Client risk profiles - strategic asset allocation guidelines
Abbey (Oxford Risk) Profiles 1
Extremely risk averse 2
Defensive 3
Defensively cautious 4
Cautious 5
Cautiously balanced 6
Balanced 7
Growth seeker 8
Wealth accumulator 9
Speculating accumulator 10
Aggressive accumulator
Risk Target
2.0%
4.0%
6.0%
7.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Strategic Asset Allocation
Equities
0.0%
25.0%
35.0%
45.0%
55.0%
67.5%
78.0%
92.0%
98.0%
Fixed Income
40.0%
12.5%
5.0%
3.0%
Property
Absolute Return / Hedge
15.0%
Cash
50.0%

17. Your Multi Asset Partners – Risk Mapping
Abbey (Oxford Risk) Profiles 1
Extremely risk averse 2
Defensive 3
Defensively cautious 4
Cautious 5
Cautiously balanced 6
Balanced 7
Growth seeker 8
Wealth accumulator 9
Speculating accumulator 10
Aggressive accumulator
Blackrock
Blackrock Defensive
75 Defensive/ 25% Moderate
25% Defensive/ 75% Moderate
Blackrock Moderate
75% Moderate/ 25% Growth
25% Moderate/ 75% Growth
Blackrock Growth
Rathbones
Rathbone Total Return*
Rathbone Strategic Growth
75% Strategic / 25% Enhanced
25% Strategic / 75% Enhanced
Rathbone Enhanced Growth
GAM
GAM Star Defensive
75% Defensive/ 25% Cautious
GAM Star Cautious
GAM Star Balanced
75% Balanced/ 25% Growth
GAM Star Growth

18. What does this deliver to your clients?
Access to institutional pricing
Diversified Portfolios
Investment committee selects and reviews funds
Links to your preferred tax wrappers
Active mgt through core multi asset funds
24/7 view of portfolio valuation
Clear & transparent fees
Tailored to their risk profile

19. How do the costs compare?
TOTAL
2.85
1.00
1.85
Typical Multi Asset Fund
TOTAL
2.85
0.25
1.00
0.60
Swiss Global
Dynamic
Advisory
Portfolio
Ongoing Advice
Fee
Investment
Management
Cost of Investments
Tax
Wrappers
Custody / Execution platform

20. What are the benefits for you as advisers?