Goliaths grow UK master trust market
The arrival of global players in the UK master trust market has boosted awareness and brought benefits to Australian player Objectmastery.
The Australian company has been operating its own master trust, Transact, in the UK since March last year.
American financial services giant Fidelity launched its master trust in the UK last July, initially using the Internet. It has about £110 million under management.
Objectmastery group managing director Michael Howard, says Transact now has £50 million under management while Skandia, which launched a multi-range choice master trust in the UK in 1994 has £1.4 billion under management.
"Transact has been performing well because it understands the financial planning market better than its competitors," says Howard.
"But with players like Fidelity coming in, there is now a market for master trusts. We believe the more competition the better."
Howard says independent financial advisers are desperate for advice on products and for the bundling of product solutions that master trusts can provide.
"The difference between Transact and Fidelity is what advisers do when they compare the products," he says.
"When dealing with Transact, the advisers ask us how we can incorporate a particular product or asset, rather than asking us why we are better than our rivals."
Howard says there are now 150 advisers in the UK using Transact. That list is growing at about 15 a month.
But he admits the UK financial planning industry still has a lot to learn.
"The UK (financial planning) industry is about 10 years behind the Australian financial planning industry," Howard says.
"The UK has never had the rollover legislation Australia had back in 1983, which has led the mums and dads to drive the financial planning market."
Recommended for you
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
Australian licensees are expected to make greater use of custom model portfolios for their clients, according to State Street Investment Management, following in the footsteps of US peers.
Adviser Ratings has argued that it’s time for more advisers to utilise digital engagement tools available to them as a disconnect grows between consumers seeking advice from finfluencers and from professionals.
