Integrated, flexible, accurate risk profiling at no cost
Rewatch Our Webinar
On Wednesday 14th December 1:00 – 2:00 pm, we hosted our annual platform webinar. In which we discussed the core points of the report.
The Bottom Line
For the first time in over a decade, assets on adviser platforms declined, from £710bn to £655bn in 2022, a 7% decline relative to the year before. Given that this was a difficult year for the market with a Global 60/40 portfolio experiencing 10% decline, perhaps this should be seen as a sign of market resilience.
Your Margin is My Opportunity
Thanks largely to interest margin on client cash, yield on assets improved meaningfully from 24bps to 27bps, reaching the highest level over the past 5 years. There is a stark contrast in the difference between the yield on assets of the new entrants such as Fundment and P1, and the incumbents, many of whom command yield in excess of 0.25%.
Slowly, Then Suddenly
Once asked how change happens in the platform market, sector analyst, Ernest Hemmingway, replied ‘slowly, then suddenly.’ Much of the consolidation in the sector in the past few years is largely a consolidation of balance sheets and logos, rather than that of technology and propositions.
Calculating capacity for loss properly
Risk profilers typically tend to try to measure Capacity for Loss by asking questions about the stability of your income sources, but those in supposedly 'stable' jobs can one day be made redundant unexpectedly, while many self-employed people might have stable income for years.
Timeline's Risk Profiling integrates with Timeline's Financial Planner, and calculates a client's capacity for Loss based on an analysis of how their financial plan would fare across hundreds of scenarios from 120 years of history.
Calculating capacity for loss properly
Risk profilers typically tend to try to measure Capacity for Loss by asking questions about the stability of your income sources, but those in supposedly 'stable' jobs can one day be made redundant unexpectedly, while many self-employed people might have stable income for years.
Timeline's Risk Profiling integrates with Timeline's Financial Planner, and calculates a client's capacity for Loss based on an analysis of how their financial plan would fare across hundreds of scenarios from 120 years of history.