Rosti (Vanguard): “The financial advisor is like a director”

The profession of consultant has experienced a profound evolution in recent years. Long gone are the days when it was a question of “placing” products, today what makes the difference is the ability to present oneself as a director in responding to the increasingly complex financial needs expressed by customers. Outlining the change is Simone Rostiresponsible for Italy and Southern Europe of Vanguardfor which those who will be able to intercept this evolution will have the opportunity to differentiate themselves on the market and give their customers added value, encouraging loyalty.

What are the pillars on which consultants should base their business today?

“There are three: building strong relationships, taking time to understand clients’ financial goals, risk tolerance and concerns; behavioral coaching, aimed at managing clients’ emotions, especially in difficult market moments, helping them to remain disciplined and focused on long-term objectives; portfolio construction, through the definition of a long-term asset allocation strategy. In this way it is possible to offer a tangible service that goes beyond investment performance.”

At Vanguard you strongly believe in the value of holistic consultancy. What do you mean?

“For us it essentially means creating a diversified asset allocation in a long-term perspective, discipline in rebalancing, use of efficient low-cost products and solutions and, finally, strong attention to relational aspects and behavioral education of customers”.

What are the next challenges in the world of consultancy?

“The most important is to increase the efficiency of private investors’ portfolios. Financial advisors have realized that, thanks to the use of passively managed instruments, such as index funds and ETFs, it is possible to achieve this objective. Although the market is still dominated by the placement of classic funds, we at Vanguard offer partner networks low-cost solutions to be used as underlyings within their vehicles which, with the same profitability for the network, can therefore be offered at a lower price. cost to end customers. These solutions can also be used directly for the core part of the portfolio, with the aim of making it more efficient.”

How do you as a company aim to engage and support financial advisors?

“We want to become the reference partner for Italian consultants, thanks to the offer of efficient tools and a training path that helps them free up time by promoting activities with greater added value, such as managing the relationship with the client. Through partnerships we provide support to consultants through training activities and model portfolio and management insights services, leveraging the research of Vanguard’s new Advisory Center.”