The two smaller platforms vying for advisers’ assets
Adviser Ratings has identified two smaller platforms, which are making inroads in challenging established players in the market, as switching movements heat up.
In the firm’s platform survey which analyses intended fund flows, HUB24 and Netwealth are namechecked as the main recipients of future inflows. The Quality of Advice Review, in particular, is viewed as a tailwind for platform switching, with advisers’ switching expected to peak over the next two to three years.
“The battle for platform FUA is well and truly on, with incumbents roaring back into the market to tackle the inflows going towards HUB24 and Netwealth and with super funds now grappling with post-retirement monies exiting their funds.
“We are seeing intended flows still heading to HUB24 and Netwealth, with BT Panorama and AMP North making inroads.”
However, the business also identified smaller players, DASH and Mason Stevens, as platforms seeing steady growth, and highlighted their adviser demographics.
DASH was formed in 2022 from the merger of Wealth02 with software firms NEO and Roar, while Mason Stevens was formed in 2010 and offers an investment platform alongside asset management and private banking.
In July, it was reported that Mason Stevens is considering an IPO which will see it join rival platforms HUB24, Praemium, AMP and Netwealth on the ASX, while DASH has completed a capital raise from venture capital firm CoAct Capital.
“The smaller platforms like Mason Stevens and DASH are coming from a relatively low base. Accordingly, intent should remain overwhelmingly positive whilst in flow growth mode. Both platforms will be hyper-focused on targeting their platform investment based on both their adviser demographic and the key drivers to what may make an adviser switch – especially in what has been traditionally a very sticky decision.”
On the flip side, platforms that are expected to see outflows include Asgard, OnePath and MLC Navigator.
The research also highlighted eight factors which it believes are crucial for advisers when considering platform switching.
These are:
- Adviser experience – a responsive platform evolving to adviser needs.
- Client experience – a modern interface and functionality.
- Ease of client onboarding – speed and efficiency of client onboarding.
- Platform functionality – a platform’s digital features, user experience and automation.
- Platform price – the overall cost and value proposition.
- BDM support – BDMs who are available and knowledgeable about a platform’s features.
- General adviser support – an effective and accessible support structure and call centre.
- Overall investment option – quality, suitable and flexible investment options, including separately managed accounts and alternatives.
AUTHOR
Laura Dew
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