ObjectMastery ignores dire times
Australian firm ObjectMastery is shrugging off the downturn in the funds management business in the UK with its Transact wrap account receiving inflows of about $375,000 a day during September.
Elsewhere in the UK, fund manager inflows have dropped by as much as 75 per cent, according to some sources, but ObjectMastery general manager Ian Craig says his company has not felt any of that impact.
“We are continuing to sign up new advisers, as well as seeing a lot of new business coming from transfers of existing assets into Transact,” Craig says.
“Advisers in the UK have a greater reliance on front-end commissions and they are finding the going very tough. They are beginning to realise that the recurring income provided by our wrap platform can give their business the security they need.”
Craig says much of the impetus for the growth has come as a result of recently forged alliances which have given strong support to new business. One of these deals with global investment manager Aberdeen has resulted in more than £10 million ($25 million) flowing into the wrap.
According to Craig, Transact's trail commission has also attracted a number of advisers, as the commission is offered across a client's whole portfolio. At present, the dial-up trail commission structure ranges from 0.55 per cent to one per cent, with an up-front commission between 0.5 per cent and 3.5 per cent.
AUTHOR
John Wilkinson
Recommended for you
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?
Despite its popularity, only 1 per cent of financial advisers say they have often discussed cryptocurrency with clients, CoreData said, fuelled by concerns of heavy legal expenses if the product goes wrong.
AFCA and the CSLR have signed a memorandum of understanding as to how they will support an efficient financial services sector via the scheme.
