“It’s not about saying an IFA can’t pick funds. It’s about saying where should you spend your time most effectively for the client? Now, that happens to be tax planning and the crystallisation of various final salary schemes.”
Like the ‘active management is dead’ argument, Toogood thinks the view that IFAs will be made totally obsolete by robo advice is “moronic.”
“The unique selling point is the relationship management, the decision making and asking, what do you want in 30 years’ time?”
Similarly, fund managers need to focus more on their USP instead of being consumed by “beating the next person like some kind of marathon.”
Asset managers should be asking themselves: “Where is my alpha? Where is my differentiator? Where do I add value versus what you expected me to do?”
