Mastering the UK market
Melbourne-basedObjectMasteryhas broken the $1 billion funds under advice barrier with its UK wrap Transact.
At the end of August, the wrap had $1.3 billion of funds under advice with inflows averaging $50 million a month, says managing director Mike Howard.
“The UK financial services market is just beginning to thaw, but the thing that has surprised us is how reactive the mums and dads are to the [UK] stock market,” he says.
“We benefit from both market declines and rises, as we earn a fee when they are selling in a declining market and another when they start buying again.”
Howard says the volatility of the stock market has spooked the British mums and dads and it would be positive for the wrap business for some stability to be established in the next 12 months.
Despite the unsettled conditions, advisers are still signing up for Transact at about 18 a month, a rate that has been steady for the last two years, Howard says.
“There are now 800 advisers using the wrap and about 11,000 clients,” he says.
“The important thing is the rising use of wraps. The number of clients per adviser keeps rising and existing investors are opening new wrap accounts.”
The UK wrap market is becoming more competitive, Howard says, with major institutions looking to launch their own wrap services.
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
