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Unformatted text preview: tners are bound to join the practice soon, and Murray strongly believes that they needed to grow the business even further. While the business strives on the knowledge and experience of the partners, who are advis‐ ing the clients in matters of wealth management, without office managers the business wouldn’t be able to function. Both offices have an office manager and the North Sydney of‐ fice also has a receptionist, Tracy, who answers the phones and looks after the client files. Kerrie is the manager in charge of office operations in North Sydney. The $RU business model Core to $RU’s business model is its independence from any investment product vendor. The financial planners are not affiliated with any group or provider and are free to offer the best Faculty of Economics & Business Discipline of Business Information Systems Page 1 $RU Teaching Case (INFS1000) by Dr. Kai Riemer products to their clients. More importantly, the $RU team does not see its role in picking and blending the best investment products, but in designing the right investment strategyand a balanced portfolio of investments, which fits the clients’ strategy. As Murray puts it: “It depends where financial planners feel they add value. There are a lot of financial planners that you’ll sit down in front of and all they’ll talk about is the funds that they’ve selected and ‘I’ve blended this fund with that fund and I’ve got a return which is blah blah blah and I’ve moved this here and I’ve bought shares and sold shares’, and that’s all they’ll talk about, that’s what they think their value is. Our position is: that’s basically bullshit! That you can’t beat the market and so we don’t buy and sell shares for clients because quite frankly fund managers do a much better job at that than what we can do. And we’re indexing more and more of the portfolios because we’re finding a lot of the fund managers can’t beat the index. So you won’t see any of us sort of getting too excited about talking to fund managers or getting excited about: yeah, good stock for a client. But there are a lot of advisers that will do that.“ Currently, $RU has about 250 clients, most of which are older clients who have already re‐...
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