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
Adviser Ratings has revealed almost 400 advisers joined the FAR in the third quarter but, with just seven weeks to go until the education deadline, more than 1,000 could depart in the upcoming two quarters.
Pengana has appointed a senior fund manager from Tyndall Asset Management to join its Australian equities team, who departs after 18 years.
Advisers are underestimating how much time they spend on non-advice work, creating inefficiencies within their practice which has a financial impact on their bottom line, according to Elemnta.
Hudson Financial Planning has partnered with OpenInvest to launch an online investing solution designed to address Australia’s advice accessibility challenge.
