Australia’s first direct-to-client alternative investments platform launches today
Aleda Capital digitises the traditional broker investment model.
Aleda Capital, Australia’s first direct-to-client alternative investments platform, officially launches to market today following its soft launch in 2016. The new platform aims to digitise the traditional broker investment model and simplify the time-consuming onboarding process.
I visited the Aleda Capital office earlier this week to meet the team behind the new model and see first-hand how the online platform works prior to its public launch. Director at Aleda Capital Neil Shellshear spoke of how the platform achieves their aim of simplifying the traditional investment process for clients.
“What we’ve done is, we’ve taken the traditional model, patched it up and put it online. So it makes it a simplistic approach for clients,” said Shellshear.
“It’s all the pieces that generally would happen when you sit down with a wealth adviser or someone like that and have a conversation. Where as now, you can self-direct and go straight in yourself.”
He took me through the application process for new clients, including registering for an account and filling in personal details and completing a simple questionnaire to determine the client's risk profile, goals and time frame. Once this is done, the client will be shown the investment strategies they’re eligible for.
After selecting the strategy they’d like to pursue, the client receives a fully-digital, no-fee Statement of Advice. The whole process was incredibly streamlined, simple to follow and took less than 15 minutes.
Aleda Capital Director Jason Holdsworth said as the platform offers access to CFD and foreign exchange (FX) trading as well as Exchange Traded Funds (ETFs), there is also a knowledge test to help determine a client's’ investment experience level.
“We make sure the client has a transparent understanding of exactly what they’re doing. If a client doesn’t show that they’re knowledgeable, it will eliminate them from those strategies (CFDs and FX) and they’ll only be eligible for the ETFs. It won’t allow a client that is completely new, that knows nothing, access to products that they shouldn't have,” said Holdsworth.
Focus on transparency
Holdsworth said the company’s values are around diversification, simplicity and transparency, and they were determined to bring change to an industry often associated with hidden fees.
“It’s a shame in some respects that the industry is tainted with a reputation for hidden fees and charges, but this makes us more determined to offer transparency and simplicity and build long-term relationships with our clients, rather than simply trying to get people in the door,” said Holdsworth.
“In regards to transparency, all of our returns are net of fees. So everything that goes out into the public is net of all fees.”
Aleda Capital is a managed account investment solution for self-managed super funds and individual investors of all experience levels. The platform is live in the market from today, and requires a minimum initial investment of $20,000.
Image: Jason Holdsworth and Neil Shellshear, directors at Aleda Capital