Behavioural Finance Australia forms new partnership with Bellmont Securities

posted on September 6th, 2016 by Bellmont Research Team

Behavioural Finance Australia (BFA), a specialist independent behavioural finance consultant, has today announced that it has teamed up with Bellmont Securities (Bellmont), a specialist independent equities manager and broker, to offer a behavioural finance inspired investment solution designed specifically for accountants and advisers, and their SMSF clients.

“Behavioural finance research demonstrates that investors (including both professional investors and sophisticated individual investors) are subject to a range of investment decision-making biases. It formalizes some of what many investors, accountants and advisers may have already experienced anecdotally. But rather than relying on anecdotes, behavioural finance research measures investment decision-making in controlled laboratory settings, or in large-scale real-world environments, and links the findings with relevant research from psychologists and neuroscientists about how the brain functions and how people make decisions,” comments Simon Russell, Director of BFA.

The investment solution comprises a portfolio of directly held shares to be managed by Bellmont. In the way it is managed and structured, it seeks to overcome a number of investor biases that can lead to worse financial outcomes for clients in the long term – such as from incurring unnecessary taxes and costs. It also seeks to capture the benefit of other investors’ decision-making biases. It will achieve these benefits by employing a low-cost, low-turnover rules-based investment approach, by allowing clients to access the benefits associated with direct share ownership, by creating a portfolios tilted towards value stocks, and through behaviourally-aware client engagement strategies.

“BFA has also partnered with Bellmont because, as a relatively small and entrepreneurial player in the Australian market, Bellmont is more able to tailor its offer. For example, it is able to deliver its service via a number of different platforms or managed account providers. It is also able to accommodate a number of customisations in the way the portfolio is constructed and delivered. These can allow the accountant/adviser to tailor the risk/return characteristics of the portfolio as well as the client experience,” comments Russell.

Under the new arrangement, BFA will help accountants and advisers to define the characteristics of the investment solution that best meet their client and business needs. Different solutions are expected to suit different business models, including those operating as stand-alone advice or accounting businesses, as well as integrated accounting/advice businesses and SMSF administrators. BFA will also assist the accountant/adviser to implement the solution, including helping to educate and engage with both clients and staff.

“We’ve been keen to work more closely with BFA for some time. We have always been impressed with how they operate, and we think there are great synergies between our businesses”, comments Peter Bell, Director of Bellmont.

What is different about the investment solution is that 1) it applies behavioural finance insights in both the investment management and client engagement, 2) it targets a relatively under-serviced part of the market by offering a non-traditional direct investment solution designed for more sophisticated, independently-minded SMSF investors, and 3) it can be delivered in a flexible way to accommodate a range of different business models and client needs.

Enquiries should be directed to:

Simon Russell
Director, Behavioural Finance Australia
0413 587 766
[email protected]

Peter Bell
Director, Bellmont Securities
1300 368 295
[email protected]

Links to published articles

Self Managed Super Magazine – Behavioural Finance Australia (BFA) has partnered with specialist independent equities manager

IFA – New solution to combat biased investor decisions

BFA, Bellmont uncover bias-free synergies

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