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.
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
