Why some adviser funds are falling behind industry leaders

Adviser Funds: Firms Struggling to Keep Pace with Peers

Regulation

The Financial Conduct Authority's ambitious reforms, described as 'once-in-a-generation,' are facing resistance from advisers. Many firms appear hesitant to fully embrace these changes, raising questions about the future effectiveness of the regulatory landscape.

Podcast Highlight

In a recent discussion from Gleneagles, Jennifer and Nicola Ellis of Wellington Wealth shared insights on encouraging client spending and the unique challenges of advising TikTok influencers. Their approach to managed portfolio service (MPS) selection offers valuable lessons for advisers aiming to engage younger, digitally-savvy clients.

Fund & Manager Analysis

• Meet the Advice CIOs: Douglas Kearney of Intelligent Pensions and Pacome Breton of Nutmeg reveal how their mandates are adapting to client needs.
• FCA Data Request: An analysis of what 5,000 advisers will be asked highlights the increasing emphasis on data-driven decision-making.
• In-House Fund Performance: A ranking of 25 advice firms’ in-house funds sheds light on who is leading and who is lagging.
• Openwork's Fixed Income Shake-Up: T Rowe Price and Legal & General have been brought into the fold, signaling strategic shifts in fund management.

Platforms

Questions remain about the direction at FNZ as the platform landscape continues to evolve. Meanwhile, Transact’s new partnership with Intelliflo and Wesleyan’s launch of a platform powered by SS&C Hubwise indicate a clear move toward integrated adviser technology solutions.

CEO Summit Insights

Asset management CEOs gathered in London to discuss the practical applications of AI. While AI buzz is everywhere, the conversation focused on tangible benefits for clients and efficiency gains, including talks of $1 billion in savings. These insights offer a realistic view of AI's current role in asset management.

Latest Industry News

• Market Volatility: The FTSE faltered and gilt yields spiked following a Labour welfare policy U-turn, which sparked concerns about a £5 billion gap in public finances.
• Political & Financial Planning: Greg Neall shared how his financial planning expertise supported his council election campaign.
• Claims & Legal Developments: Clients face longer waits with claims firms still challenging St. James’s Place (SJP), while lawyers representing 9,600 Woodford investors allege breaches of duty by Hargreaves Lansdown.
• IFA Network Innovation: A new matchmaking service for retiring advisers aims to ease transitions and maintain client service continuity.
• PE-Backed Advisers: Private equity-backed firms are accelerating in the race for in-house fund assets.

Top 100 Firms Spotlight

Saran Allott-Davey of Heron House Allott-Davey reflects on her 36-year journey in financial services, highlighting lingering sales-driven cultures in some firms. Meanwhile, advisers caution against sacrificing progress due to poor private equity deals. Practical advice also surfaced on managing unpaid client requests, with five planners sharing their strategies.

People Moves

The CEO of Forvis Mazars Advice has departed to join the board of Fintel, signaling shifts in leadership within the advice sector.

Adviser Insight

Three planners shared creative approaches to client events, emphasizing the importance of genuine engagement—no lukewarm white wine allowed.

Regional Advice Firms

A group of IFA directors who reject private equity ownership are calling for others to build a stronger, independent community.

Mergers & Acquisitions

A private equity house has acquired Leicester-based NMA, one of the Top 100 advice firms, marking continued consolidation in the sector.

Fund & Manager Updates

• 2Plan Charges Overhauled: After adviser feedback, the 4bps charge for non-in-house funds was revised.
• SJP Investment Team Redundancies: Departures continue under a broader restructuring program.
• Defence Funds Boom: Despite growth, adviser uptake remains cautious.

Platform Developments

• D2C Platform Closure: Tillit's closure, which used Seccl as custodian and offered a curated fund list, highlights challenges for direct-to-consumer models.
• Technology Shifts: Transact's Intelliflo tie-up and Wesleyan’s new platform point to a clear trend toward integrated, adviser-focused tech solutions.

For management professionals seeking to understand the evolving landscape of adviser funds and platforms, staying informed about regulatory changes, technology integration, and client engagement strategies is crucial. Embracing data transparency and operational efficiency will be key to remaining competitive.