Why we use our platforms

With so many platforms vying for your business in a saturated market, deciding which one to use can be fraught with difficulty.

Will Roberts spoke to some leading advisers about their platforms of choice...

Carl Lamb, Almary Green

“Before we launched our model portfolios a year ago, we undertook a two-year due diligence process on various platforms. Our main platform is Skandia because of the functionality of its technology – it does what it says on the tin. We run six model portfolios managed by Principal Investment Management which Skandia can rebalance.

“We have also just recently signed a model portfolio agreement with Ascentric. One downside to Skandia is it only allows one DFM on the platform, whereas Ascentric allows as many as you want. We have linked up with Vestra, Quilter and Principle thus far to offer clients a discretionary management service.

“Ascentric also allows you to purchase ETFs and direct equities. Generally, the service levels are very good on Ascentric and Skandia and our charges are heavily discounted because of our funds under management.

“We also use Fidelity and Cofunds but not as much as one would expect and this owes primarily to poor functionality.

“We have no plans to widen our range of platform providers – you can have too much choice.”

Karl Hartey, Applewood Wealth Management

“We use Nucleus, an adviser-owned platform. It is low cost, simple and they do a good job. They understand the market place, and understand they are not an insurance company or product provider. There is a large range of funds and they rebalance the funds every 90 days.

“Some wraps owned by the insurance companies still don’t get it as they still talk about commission and not the fee that we charge.

“We use an IFA owner platform as one day they will sell, and we have built it, and should be rewarded.

“In the 90s, networks were built and sold, the directors got rich, but the guys who built it (the IFA) got nothing - not even a thank you card.

“This time we are not going to build a Fidelity or Skandia for them to get rich. The tide has now turned in favour of the adviser and a platform becomes a tool to give advice, priced clearly and transparently – unlike bundled charges and mirror funds on old style insurance products.

"Platforms are a breath of fresh air, especially if they are not 100% owned by an insurance companies.”

Ian Lowes, Lowes Financial Management

“While we have a fair amount of business on Fidelity Funds Network and Transact this is in the main legacy business and the majority of our investments are held on Cofunds.

“It was independent and provided a service to us and the clients which came at no cost compared to the alternative of dealing direct with the fund groups. We’re all about value.

“We’ve been with Cofunds since they first started and so have been through some of their growing pains but all in all they have served us and our clients well.”

Patrick Connolly, AWD Chase de Vere

“We previously used a combination of Cofunds, Fidelity FundsNetwork and Skandia.

"We found there were inefficiencies in using more than one platform and so in 2008/9 conducted extensive due diligence on the platforms on the market. This took nine months and we concluded that Cofunds was the most appropriate platform for us to use.

“This decision was based on a combination of the flexibility of the platform, available funds and products, suitability to our client base, charges and their development plans for the future.

“Our relationship with Cofunds is working well. However, the platform arena is fast changing and so we will be reviewing our platform strategy on a regular basis.”

Mark Newman, Prosperity Independent Financial Advisers

“We use Ascentric and Cofunds wrap accounts for the following reasons.
“Ascentric: most efficient cost/charges for clients; investment range of asset classes (inc CREST eligible equities); large range of funds available on EMX.

“Cofunds: funds only but more cost effective for clients; no minimum charges for smaller portfolios; well structured and profitable organisation.

“In summary our research found that the most important thing to clients were availability, ease of access and cost efficiencies.”