Independent Wealth

Crossbridge Capital and Dimensional Fund Advisors announce collaboration

Crossbridge Capital (“Crossbridge”), a leading independent global wealth manager, has announced that it will be working closely with Dimensional Fund Advisors (“Dimensional”), as part of its commitment to empower financial advisers to focus on delivering a true value-added service to their clients.

Well-known for its investing model which is based on the science of capital markets and rooted in research from the top minds in financial academia, Dimensional works with a select group of Financial advisory firms in Asia. Crossbridge clients will not only continue to benefit from the tailored investment strategies already available through the intuitive digital platform CONNECT but their investment solutions will now also be powered by Dimensional, according to a press release.

Joel Teasdel, Head of Wealth Management Group, Asia ex-Japan, Dimensional Fund Advisors, said: “We’re honoured to be selected by Crossbridge as the core investment manager on the new CONNECT platform. Crossbridge Capital is a progressive Independent Asset Manager in Singapore and we’re pleased to be working with them as they roll out a digital wealth management experience for other advisors.”

“There is growth potential to bring digital TAMP solutions to Asia, as it has been a successful model in Europe, North America and Australia. Independent Wealth Management firms in Asia are increasingly looking for next-generation solutions to more effectively manage their client assets and accelerate business growth,” continued Teasdel.

Charlie O’Flaherty, Partner, Head of Digital Strategy and Distribution, Asia, Crossbridge Capital, said: “More and more financial firms are using or exploring the adoption of white-labeled asset management solutions as they seek to delegate aspects of their asset management business either for efficiency or revenue growth. Working with Dimensional enables us to tap this growth by offering financial advisers and clients even more robust services and enhanced client cost benefits delivered through CONNECT.”

Strong Global Demand for TAMPs

The use of contracting providers and platforms like Turnkey Asset Management Platforms (TAMPs) has increased sharply in recent years as financial advisers seek ways to deepen customer relationships and differentiate themselves in a crowded market. TAMPs help advisers to better focus on business growth and client relationships by providing outsourced investment management, technology, and back-office workflows.

Over the past five years, the independent channel has grown faster than the traditional channel (11% per year versus 9%) while independently advised assets are expected to increase from USD8.4 trillion in 2017 to USD12.1 trillion in 2022, representing about 48% of overall adviser assets. As a result, the value of assets managed on TAMP platforms is also predicted to expand from USD7.4 trillion in assets in 2018 to USD13 trillion by 2024.

With only an estimated 27% of financial advisers currently outsourcing investment management via TAMPs there is significant room for further growth. By working with Dimensional, Crossbridge is making access to the advantages and benefits of using TAMPs widely available to financial advisors in Asia for the first time.

By outsourcing investment and portfolio management to Crossbridge, financial advisors will be able to offer more holistic financial planning services and use the increased client facing time to deepen client relationships.

Aligning Investment Strategies for a Better Investment Experience

The new investment solutions with Dimensional will enable Crossbridge and its partners to more effectively align investment strategies for their clients to focus on four key tenets:

Firstly - Goal-based investment: Crossbridge will utilise its understanding of its clients to recommend different portfolios tailored to clients’ various investment goals and risk appetites.

Secondly - Long-term investment: a long-term outlook smooths impact from market volatility by cutting down the noise and removing emotion from the equation.

Thirdly - Global diversification: Diversified investment portfolios allow Crossbridge to offer more stable returns.

And finally - Fee efficiency: Clients are able to leverage low, all-in fees to maximise performance and returns.

“We want to empower our financial advisers to focus on their true value-add – the deepening of client trust and relationships allowing them to grow their businesses while we provide investment insights, support and process automation,” commented O’Flaherty.