OpenInvest adds BlackRock to its investor marketplace

OpenInvest chief executive Andrew Varlamos said self-directed investors including SMSFs will now be able to access a greater range of portfolios managed by some of the world’s most prominent asset managers.

“The genesis of OpenInvest was our belief that most self-directed investors would like at least some help, but thought they couldn’t afford it, didn’t know how to access it, didn’t speak the language of asset managers, and didn’t think it was possible to get professional help but still retain the degree of control they wanted,” Mr Varlamos said.

“Over the past six turbulent and unpredictable months, there’s little doubt that investing has become even more challenging, with self-directed investors feeling increasingly uncertain.

“The difference between doing it all yourself versus being able to benefit from the extensive global resources, expertise and experience of a world leader like BlackRock has been brought into sharp focus.”

BlackRock head of Australasia Andrew Landman said the firm is pleased to see its iShares Enhanced Strategic Model Portfolios available on the OpenInvest platform.

“Incepted in 2015, our iShares Enhanced Strategic Model Portfolios are designed to provide investors with exposure to broadly diversified portfolios in a cost-effective and transparent manner,” Mr Landman said. “As a firm, we continuously strive to create a better financial future for clients, and I’m excited to see a broader base of investors use our iShares Model Portfolios to achieve their long-term investment objectives.”

Mr Varlamos noted recent research that suggests SMSF trustees are facing an unprecedented hit as a result of the impacts of the COVID-19 pandemic on a wide range of businesses and industry sectors, and the likely reality of ultra-low interest rates for a long time to come.

“SMSF portfolios are heavily weighted towards what trustees thought were safe, big dividend-paying stocks. Many such companies have not only been forced to suspend or dramatically cut dividends, but their share prices are significantly lower,” he said.

“Given the negligible rates for safe investments such as term deposits, SMSF trustees need to be invested in broadly diversified portfolios, giving them exposure to the right mix of asset classes, in order to achieve their income and growth objectives.”

OpenInvest has also announced the appointment of Spiro Pappas as chairman. Mr Pappas brings over 30 years’ experience in senior leadership roles in banking and finance to the OpenInvest board.