Our Publications

 Platform Report 2021: Field of Dreams

The report focuses on the financial performance of the platform businesses, not their parents. We’ve trawled through numerous annual accounts and hundreds of data points to get a good picture of the financial health of the platform sector. And yes, the infamous FinalytiQ Financial Performance Rating is back! We’ve rated the platforms, and provided a summary of the financial health of each business.

The past year seems to have flown by rather quickly. Blink and you may have missed some of the defining events in the platform space. Fear not, we’ve got you covered. Here we delve into the major shifts in the platform sector and share our thoughts on what the change means.
The pandemic revealed the disaster recovery plan of many platform providers for what it is; the equivalent of an emergency car kit which consists of a tartan blanket, a small box of tissues and a near-empty tin of Victorian travel sweets. Yet miraculously, the sector managed to weather the storm in a much better shape than the rest of the economy.

Indeed, if the deluge of Private Equity (PE) money that has flooded the sector is anything to go on, you’d be forgiven for thinking the pandemic actually gave the sector a bit of a financial shot in the arm. With a surge in retail share trading and increasing demand for advice amidst the economic uncertainties and market volatility, it is not surprising to see an increase in M&A activities in the platform sector. It might just be a coincidence, of course, but PE investment is a sign that the platform sector is once again ‘a field of dreams’.

ADVISED PLATFORM REPORT (2019)

This guide provides in-depth insight and analysis of the financial performance of 21 advised platforms over the last five years. The platforms covered in this report together account for more than 95% of the total AUA in the adviser market. We examine key metrics to give a clearer picture of the financial health of platforms – AUA, revenue, pre-tax profits/losses, yield on assets and profit and loss (P&L) account reserves over the last five years.

The guide focuses on the financial performance of platform businesses, not their parents’. We’ve trawled through who-knows-how-many annual accounts and hundreds of data points to get a good picture of the financial health of the platform sector.

We put platforms in peer groups to get an understanding of whose cost base is out of control, and we look at P&L account reserves to see who has a hole in their books. And yes, the infamous FinalytiQ Financial Performance Rating is back! We rated the platforms, and we provide a summary of the financial health of each business.

Most platforms have a year-end date of 31 December. We’ve compiled data for years ending 2014, 2015, 2016, 2017 and 2018. But there are some exceptions, and we had to compromise. Where a company’s year-end is before 30 March, we use accounts filed the following year. Of course, this means that results for some platforms extend over a slightly different period, due to factors like changing account year end. That can’t be helped. 

MULTI-ASSET FUND REPORT (2019)

The 2019 edition of the Multi-Asset Fund Guide is the most comprehensive study of UK risk-rated multi-asset fund families. This guide is an in-depth analysis of 89 fund families consisting of 391 multi-asset funds in which £125.7bn of client’s money is invested.

The report and the accompanying excel dataset include;

• Extensive data and insight on 89 risk-rated/risk-targeted multi-asset fund propositions
• Excel-based Efficient Frontier charts that enable users to compare the risk-adjusted performance of each fund family with the whole universe
• Analysis of key metrics including cost, volatility and performance over various time periods
• FinalytiQ Multi-Asset Ratings for 89 multi-asset families
• Summary factsheets and ‘Efficient Frontier’ charts for the most popular fund ranges
• Keymarket trends and regulatory implications for asset managers and advisers

ADVISED PLATFORM REPORT (2018)

Titled Utopia and Dystopia: A tale of two platform cities, the report is packed with our signature thought-provoking, no-holds-barred insight and data on the financial performance of 28 advised platforms.]

Transact and Nucleus listed on LSE’s main and AIMS markets respectively. AJ Bell is getting ready to go public. True Potential (TP) is reportedly looking for a buyer at a whopping £2 billion valuation! These independent platforms are growing up and making their own way in the world.

Meanwhile, Cofunds, Aviva Platform and Ascentric continue living in their parents’ basements. Alliance Trust Savings (ATS) is on life support.

This has been a tumultuous year for platforms, and that’s putting it mildly. This report provides the most comprehensive analysis of financial performance of advised platforms. It includes extensive data and commentary on the financial performance of 28 advised platforms which together account for more than 95% assets of the advised platform sector. The report includes;

• Analysis of key metrics including AUA, revenue, pre-tax profit, pre-tax profit margin, P&L Reserve Account over the last five years
• Summary of valuations and M&A activities for advised platform
• Key insight on re-platforming, technology and their likely impact on advisers and clients
• FinalytiQ Financial Performance Rating for 28 platforms and summary factsheets on each provider

The report is designed to form a key part of adviser platform due-diligence. There is a clear regulatory and professional obligation on advisers to consider the long-term viability of platforms in the selection process. This guide provides unparalleled data and insight to help advisers assess the long-term viability of their platform partners.

MULTI-ASSET FUND GUIDE (2018)

The 2018 edition of the Multi-Asset Fund Guide is the most comprehensive study of UK risk-rated multi-asset fund families. This guide is an in-depth analysis of 91 fund families consisting of 402 individual funds in which a £148bn of client’s money is invested.

The report and the accompanying excel dataset include;

• Extensive data and insight on 91 risk-rated/risk-targeted multi-asset fund propositions
• Excel-based Efficient Frontier charts that enable users to compare the risk-adjusted performance of each fund family with the whole universe
• Analysis of key metrics including cost, volatility and performance over various time periods
• FinalytiQ Multi-Asset Ratings for 91 multi-asset families
• Summary factsheets and ‘Efficient Frontier’ charts for the most popular fund ranges
• Keymarket trends and regulatory implications for asset managers and advisers

ADVISED PLATFORM REPORT (2017) 

Now in its 4th year, Advised Platform Profitability Report is the most comprehensive analysis of financial performance of advised platforms. It includes extensive data and commentary on the financial performance of 26 advised platforms which together account for more than 95% assets of the advised platform sector.

The report includes;

• Analysis key metrics including AUA, revenue, pre-tax profit, pre-tax profit margin, P&L Reserve Account over the last five years.
• Platform Survival Matrix, to help advisers assess the long-term sustainability of platforms.
• FinalytiQ Financial Performance Rating for 26 platforms and summary factsheets on each provider
• Key insight on re-platforming, technology, consolidation and their likely impact on advisers and clients.

The report is designed to form a key part of adviser platform due-diligence. There is a clear regulatory and professional obligation on advisers to take into account the long-term viability of platforms in the selection process. This guide provides unparalleled data and insight to help advisers assess the long-term viability of their platform partners.

MULTI-ASSET FUND GUIDE (2017)

We’re delighted to publish the 2017 edition of the Multi-Asset Fund Guide! The guide is an in-depth analysis of 67 fund ranges consisting of 308 individual funds from 46 asset managers with a total of over £114 billion clients’ assets. 

The report includes;

• Extensive data, charts and insight on 67 risk-rated/risk-targeted multi-asset fund propositions

• Analysis key metrics including cost, asset allocation, volatility and performance over various time periods.

• FinalytiQ Multi-Asset Suitability Ratings for 67 multi-asset propositions

• Summary factsheets and ‘Efficient Frontier’ charts for the most popular fund ranges

• Key market trends and regulatory implications for asset managers and advisers

SIPP FINANCIAL STABILITY GUIDE 2017

We are delighted to introduce the 2017 edition of our SIPP Financial Stability Guide. We teamed up with SIPP industry veteran Mr. SIPP aka John Moret to provide an in-depth insight into the financial performance of non-insured bespoke SIPP providers.

The report is a detailed financial analysis and benchmarking insight on the financial stability of 16 non-insured bespoke SIPP providers, who together account for more than 90% of the market.

The report covers the following;

• Key market trends and implications for providers, advisers, and clients;
• Extensive data on number AUA, No of SIPPs, Percentage of Non-Standard Assets as wells as Revenue, Profit, Profit Margin and P&L Account Reserve over the last 5 years;
• Providers’ capital resources requirement under FCA PS14/12 and.,
• We award a FinalytiQ Financial Stability Rating to each of 16 providers, together with a summary of the key issues facing them to give advisers an indication of their long term viability.

ADVISED PLATFORM REPORT (2016)

The 2016 edition of the Advised Platform Report is the most comprehensive analysis of advised platforms you’ve ever read.  It includes extensive data and critical analysis on the financial performance of 26 advised platforms who together account for more than 95% assets of the advised platform sector.

The report includes;

• Analysis key metrics including AUA, revenue, pre-tax profit, pre-tax profit margin, yield on asset, P&L Reserve Account over the last 5 years.

• FinalytiQ Financial Performance Rating for 26 platforms and summary factsheets on each provider

• Platform pricing charts in % and £

• Platform Survival Matrix, to help advisers assess the long-term sustainability of platforms.

•  Key insight on re-platforming, technology, consolidation and their likely impact on advisers and clients.

• Key productivity metrics including revenue per client, revenue per staff to benchmark platforms and support their business planning.

THE GREAT GUIDE TO RISK-RATED MULTI-ASSET FUNDS

Aimed at financial advisers and asset managers, the Great Guide to Risk-Rated Multi Asset Funds is an in-depth analysis of 67 fund families/ ranges consisting of 308 individual funds from 46 asset managers with a total of £84 billion clients’ assets. 

The report includes;

• Extensive data, charts and insight on 67 risk-rated/risk-targeted multi-asset fund propositions.

• Analysis key metrics including cost, asset allocation, volatility and performance over various time periods.

• FinalytiQ Multi-Asset Suitability Ratings for 67 multi-asset propositions.

• Summary factsheets and ‘Efficient Frontier’ charts for the most popular fund ranges

• Key market trends and regulatory implications for asset managers and advisers.

SIPP FINANCIAL STABILITY GUIDE

We are beyond chuffed to introduce the maiden edition of our SIPP Financial Stability Guide. We teamed up with SIPP industry veteran John Moret aka ‘Mr SIPP’ to provide an unprecedented insight into the financial performance of non-insured bespoke SIPP providers.  The report is an in-depth analysis and benchmarking insight on the financial stability of 18 non-insured bespoke SIPP providers, who together account for more than 90% of the market.  The report covers the following;

• Key market trends and implications for providers, advisers and clients;

• Extensive data on number AUA, No of SIPPs, Percentage of Non Standard Assets as wells as Revenue, Profit, Profit Margin and P&L Account Reserve over the last 5 years;

• Providers’ capital adequacy requirements and amount currently held by firms as well as the new requirement under FCA paper PS14/12 due in Sept. 2016; and
• We award a FinalytiQ Financial Stability Rating to each of 18 providers, together with a summary of the key issues facing them to give advisers an indication of their long term viability.

Economics of Direct Platforms & Robo Advice

This report looks at trends in the financial performance and profitability of direct-to-consumer platforms over the last four years. The platforms covered in this report together account for more than 80% of the total AUA in the direct-to-consumer market.

• D2C Platforms: The report includes comprehensive data on the revenues, profits/losses. yield on assets, profit/loss margin and P&L Account Reserve of 16 D2C platforms.  How do direct platform stack up in terms of financial performance and profitability? How has the unprecedented growth in AUA reflected in the bottom-line of platforms? How have platforms faired from financial performance point of view; and how we poised for poised for the future? The growth in the sector hasn’t been without some casualties, as evidenced by the number of consolidation and withdrawal from the market place. Who are the winners and losers going forward?
• Robo advice: With changing retail distribution landscape, robo-advice is all the rage right now. We know that discussions are going on in boardrooms and providers/asset managers are wondering if robo-advice is the next big thing, although very few of them are actually queuing up to launch robo-advice propositions. So we thought we’ll do a little bit of poking around into the economics of robo-advice, but as robo advice market is still a bit nascent in the UK, we look at the developments across the pond. We looked at the capital funding, AUM, fee model and estimated revenues of top 10 roboadvisers in the US!

Guide to Platform Profitability (2015): Cracking Under Pressure

Welcome to the second edition of the Platform Profitability Guide.  One year seems like a long time in platform land; since our last report, a raft of events have brought the importance of profitability and the long-term sustainability of platforms to the fore.  We think this is a good thing. 

The guide is a detailed analysis of trends in the profitability of advised platforms over the last 4 years. It includes comprehensive data on the revenues, profits/losses. yield on assets, profit/loss margin and P&L Account Reserve of 23 major adviser platforms, who together account for more 90% of the total AUA in the adviser market.We know that the FCA is conducting its long-awaited thematic review into adviser due diligence, so advisers must leave no stone unturned. The purpose of this report is to help advisers assess the long-term sustainability of platforms. Profitability is crucial and should play a key role in adviser due-diligence and selection because deep pockets of a parent company just aren’t enough. 

For platforms, this report offers market insight based on robust facts and figures to support business planning and validate strategy. Those who bought the guide last year told us that it’s a great way of keep tabs on their competitors and  as an independent validation of their strategy.

Pound Cost Ravaging: Volatility Drag, Sequencing Risk & Safe Withdrawal Rates in Retirement Portfolios’

We’re beyond thrilled to present a new white paper ‘Pound Cost Ravaging: Understanding Volatility Drag, Sequencing Risk & Safe Withdrawal Rates in Retirement Portfolios‘ 

Published ahead of the upcoming Retirement Income Conference, this paper is a deep dive into how the combination of sequencing risk and volatility drag is exacerbated by portfolio withdrawals, resulting in ‘pound cost ravaging.’ This subtle, yet dangerous risk is often ignored and could wreak major havoc to clients’ retirement plans.

In the paper, we present some insight into the latest research on Safe Withdrawal Rates for UK clients, a useful foundation for advising clients on how best to ensure their retirement pot doesn’t run out before they do.

Guide to Platform Profitability

This guide is designed as an essential complement to other guides in the marketplace which support advisers’ platform selection process (notably pricing guides by our friends at the lang cat and The Platforum). We believe that profitability is a key dimension in the platform due diligence  and we plan to update the guide regularly to help advisers assess the long-term viability of their platform partners.

The guide looks at trends in the profitability of advised platforms over the last three years. It covers 20 major platforms, who together hold more 90% of the total AUA in the adviser market.

The report covers the following;

• Key Profitability Metrics – AUA, revenue, profits/losses, yield on assets and profit/loss margin over the last 3 years
• AUA per headcount, to get some idea of operational efficiency of platform providers
• Profit and Loss Account Reserve to see who’s got a hole in their books.
• Overview of trend towards technology outsourcing in the platform sector and the implications of ‘re-platforming’ for adviser businesses and clients asset.
• We even come up with our very own FinalytiQ Platform Profitability Rating TM. Yup, that’s right… TM! We rated 20 platforms and provide a summary analysis on each provider; who has a chance in the market in the longer term and who needs to get their act together.