1. BT Financial Group

The platform industry has suffered in the financial crisis, with funds under administration (FUA) falling from a peak of $419.7 billion in December 2007 to $317.5 billion at the end of 2009. With smaller amounts of money passing through platforms and falling fund manager assets, platforms are being squeezed.

BT Financial Group emerged with the largest amount in retail FUA, despite a loss of more than $450 million in the December 2008 quarter. BT also emerged at the top for quarterly retail fund inflows thanks to a strategy of improving the platform’s offering to advisers. It also concentrated on reducing expenses, which included making redundancies. Term deposits were also added to BT’s platforms, bringing in $2 million worth of inflows as part of a strategy to create a ‘one-stop shop’ for advisers. BT is also investigating adding model portfolios and individually-managed accounts.

2. AMP

AMP came second in terms of FUA, recording $406 million at the end of December 2008. The platform has risen from the number five ranking in a single quarter, but was sitting at number four in terms of retail FUA flows. AMP has made a concerted effort to maintain its levels of service to financial planners, while still maintaining its operating efficiencies. While revenue is down for the retail fund, there is still good cash flow coming into the platform. However, some of its products have been frozen.

3. Macquarie Bank

Macquarie Bank, which has come third for current FUA, also came first in terms of annual retail FUA flows by the end of 2008. Significant inflows of more than $3.6 billion during 2008, as well as transfer fees, have only partly offset the impact of the market downturn. Efforts to bring new clients on to the platform had numbers up by approximately 4 per cent in the first quarter of 2009. Macquarie said it was still committed to finding more operating efficiencies despite an expected 10 per cent decline in profits in 2009.

4. Colonial First State

Colonial First State, which was previously ranked ninth in terms of FUA, was named fourth largest at the end of 2008. FUA for the platform have behaved erratically, plummeting from $407 million in June 2008 to $59 million in the September 2008 quarter, then bouncing to $276 million at the end of 2008. While revenues for the platform have dropped, operating costs have remained the same, eating into its profits. Colonial is slashing its discretionary spending and cutting costs through staff leave or nine-day fortnights. Projects intended to be implemented for the platforms were reviewed, while some products that have not generated enough revenue have been removed from platforms.

5. ING/ANZ Group

ING/ANZ Group ranked fifth for FUA in December 2008, recording $132 million during that time. The bank has seen its FUA fall from a height of $685 million in December 2007. However, ING/ANZ fell to number eight in terms of annual retail FUA flows in December 2008, with $888 million. It dropped from a sixth ranking in the previous September quarter.