Investment Trends ranks top platforms
Platform providers have closed the gap in their service offerings through innovative approaches to model portfolios and client portfolio management tools, according to the 2010 Investment Trends Platform Report.
The report covered 26 leading master trust and wrap platforms, ranking MLC Navigator highest in terms of overall functionality, followed by FirstWrap, netwealth, Asgard eWrap and Macquarie Wrap. MLC Wrap and Navigator also ranked first for transactions and integration, while netwealth was ranked first in terms of decision-making and reporting. Asgard’s AdviserNET was awarded best navigation and user interface.
Investment Trends stated that the review revealed that investment platforms were increasingly addressing planners’ need for greater efficiency. Innovations introduced over 2010 included features that allow planners to better manage client portfolios, transition more easily to a fee-for-service business model, communicate more easily with providers and navigate more intuitively, the report stated.
“The arms race between platforms intensified in 2010, with a range of providers developing significant new functionality,” said Investment Trends analyst Recep Peker. "We are likely to see rapid development continue as platforms move to address new planner needs arising from the [Future of Financial Advice] reforms.”
Significant changes across the platform industry included the establishment of sophisticated model portfolios, incorporating a broad range of investment types, including separately managed accounts and term deposits, reporting of clients whose portfolios move outside preset tolerance limits, and giving advisers more control over approved investment lists.
“Over the past few years, our industry research has identified portfolio management tools as a key gap in platforms’ service offering,” said Peker. “But in 2010 providers moved to close that gap.”
He said platforms improving on efficiency was important in light of the FOFA reforms as about half the planners surveyed intended to look for platform cost savings in the future.
Two new platforms were included in the 2010 survey – HUB24 and OneVue. Investment Trends stated that both platforms enabled advisers to administer a wider range of investments than traditional platforms, including direct and alternative investments.
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
