LONDON (March 14, 2023) – ISS Market Intelligence (ISS MI), a unit of Institutional Shareholder Services and a leading global provider of data, analytics, insights, media, and events solutions to the global financial services industry, today announced the publication of its U.K. Model Portfolio Sales Report, a comprehensive look into 2022 trends and developments shaping the U.K. model portfolio market.
The report suggests that model portfolios are a key driver of fund flows within the U.K. financial adviser industry, with ISS MI data showing that financial adviser firms using at least one model accounted for more than 80 percent of platform gross sales in 2022.
Although 2022 saw a broad-based decline in overall U.K. sales activity across those using both model and non-model portfolios due to declining markets and other macro-economic factors, model portfolio gross sales through financial advisers topped £40 billion. With more than 4,000 U.K. Financial Conduct Authority (FCA)-registered financial adviser firms using models today, capturing model portfolio sales remains a central focus for fund managers looking to achieve sales success within the U.K. financial adviser market.
Leveraging distribution data from ISS MI’s Financial Clarity, which covers more than 90 percent of the U.K. retail market, the report further breaks down the usage of model portfolios within the financial adviser channel to uncover opportunities for model providers and fund managers. The report finds that opportunities for model providers and managers exist across many axes including active versus passive, ESG, and regionally. The second half of the year saw a jump in the share of model portfolio sales accounted for by passive funds, with 8 of the 10 best-selling funds being passives.
The report also analysed the best-selling model providers and fund managers by six-month model gross sales. On that basis, the best-selling model providers between July 1, 2022 and January 1, 2023, were found to be: (1) Quilter; (2) Financial Express; (3) Tatton Investment Management; (4) EBI; and (5) 7IM. The report found the best-selling fund managers for the same period, also by gross sales, to be: (1) Vanguard Asset Management; (2) BlackRock Investment Management; (3) Legal & General Investment Management; (4) Fidelity International; (5) Quilter Investors; (6) Royal London Asset Management; (7) HSBC Global Asset Management; (8) M&G Investments; (9) Schroders; and (10) Waverton.
“Based on ISS MI’s analysis showing that almost every financial adviser firm of size now uses at least one model, it seems clear that model portfolio providers have spread the word far and wide, so that model portfolios are poised to become the predominant portfolio solution amongst U.K. advisers,” said Benjamin Reed-Hurwitz, lead author and EMEA Research Leader at ISS MI. “The question is, can they convince those dipping their toes to take the plunge?”
Learn more about the U.K. Model Portfolio Sales Report here, or contact mi_emeasales@issmarketintelligence.com.
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About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading global provider of data, analytics, insights, media, and events solutions to the global financial services industry. ISS MI empowers global asset and wealth management firms, insurance companies, distributors, service providers, and technology firms by providing cutting-edge market-engagement platforms and the actionable intelligence necessary to fully assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. ISS MI clients benefit from our increasingly connected global ecosystem that leverages a combination of proprietary data, powerful software and analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards. ISS MI data and analytics solutions include intelligence from BrightScope, Discovery Data, Financial Clarity, Flowspring, FWW, Investor Economics, MISight, Mortgage Clarity, Plan for Life, RainmakerLive, and Simfund, and ISS MI media brands and market-engagement platforms include Chief Investment Officer, PlanAdvisor, PlanSponsor, Financial Standard, FS Sustainability, Money, and Industry Moves.
About ISS
Founded in 1985, Institutional Shareholder Services group of companies (ISS) empowers investors and companies to build for long-term and sustainable growth by providing high-quality data, analytics and insight. ISS, which is majority owned by Deutsche Bourse Group, along with Genstar Capital and ISS management, is a leading provider of corporate governance and responsible investment solutions, market intelligence, fund services, and events and editorial content for institutional investors and corporations, globally. ISS operates on an arm’s-length basis and Deutsche Bourse has adopted Principles protecting the independence and integrity of ISS’ research offerings. ISS’ 2,000 employees operate worldwide across more than 30 global offices in 15 countries. Its more than 4,000 clients include many of the world’s leading institutional investors who rely on ISS’ objective and impartial ESG and governance research, market intelligence and fund services and data and analytics, as well as public companies focused on ESG and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS’ expertise to help them make informed investment decisions.
Media Contact:
Audrey Dedrick
Associate, Communications
press@issgovernance.com
Model Portfolios Poised to Become Leading Solution for U.K. Advisers
LONDON (March 14, 2023) – ISS Market Intelligence (ISS MI), a unit of Institutional Shareholder Services and a leading global provider of data, analytics, insights, media, and events solutions to the global financial services industry, today announced the publication of its U.K. Model Portfolio Sales Report, a comprehensive look into 2022 trends and developments shaping the U.K. model portfolio market.
The report suggests that model portfolios are a key driver of fund flows within the U.K. financial adviser industry, with ISS MI data showing that financial adviser firms using at least one model accounted for more than 80 percent of platform gross sales in 2022.
Although 2022 saw a broad-based decline in overall U.K. sales activity across those using both model and non-model portfolios due to declining markets and other macro-economic factors, model portfolio gross sales through financial advisers topped £40 billion. With more than 4,000 U.K. Financial Conduct Authority (FCA)-registered financial adviser firms using models today, capturing model portfolio sales remains a central focus for fund managers looking to achieve sales success within the U.K. financial adviser market.
Leveraging distribution data from ISS MI’s Financial Clarity, which covers more than 90 percent of the U.K. retail market, the report further breaks down the usage of model portfolios within the financial adviser channel to uncover opportunities for model providers and fund managers. The report finds that opportunities for model providers and managers exist across many axes including active versus passive, ESG, and regionally. The second half of the year saw a jump in the share of model portfolio sales accounted for by passive funds, with 8 of the 10 best-selling funds being passives.
The report also analysed the best-selling model providers and fund managers by six-month model gross sales. On that basis, the best-selling model providers between July 1, 2022 and January 1, 2023, were found to be: (1) Quilter; (2) Financial Express; (3) Tatton Investment Management; (4) EBI; and (5) 7IM. The report found the best-selling fund managers for the same period, also by gross sales, to be: (1) Vanguard Asset Management; (2) BlackRock Investment Management; (3) Legal & General Investment Management; (4) Fidelity International; (5) Quilter Investors; (6) Royal London Asset Management; (7) HSBC Global Asset Management; (8) M&G Investments; (9) Schroders; and (10) Waverton.
“Based on ISS MI’s analysis showing that almost every financial adviser firm of size now uses at least one model, it seems clear that model portfolio providers have spread the word far and wide, so that model portfolios are poised to become the predominant portfolio solution amongst U.K. advisers,” said Benjamin Reed-Hurwitz, lead author and EMEA Research Leader at ISS MI. “The question is, can they convince those dipping their toes to take the plunge?”
Learn more about the U.K. Model Portfolio Sales Report here, or contact mi_emeasales@issmarketintelligence.com.
###
About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading global provider of data, analytics, insights, media, and events solutions to the global financial services industry. ISS MI empowers global asset and wealth management firms, insurance companies, distributors, service providers, and technology firms by providing cutting-edge market-engagement platforms and the actionable intelligence necessary to fully assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. ISS MI clients benefit from our increasingly connected global ecosystem that leverages a combination of proprietary data, powerful software and analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards. ISS MI data and analytics solutions include intelligence from BrightScope, Discovery Data, Financial Clarity, Flowspring, FWW, Investor Economics, MISight, Mortgage Clarity, Plan for Life, RainmakerLive, and Simfund, and ISS MI media brands and market-engagement platforms include Chief Investment Officer, PlanAdvisor, PlanSponsor, Financial Standard, FS Sustainability, Money, and Industry Moves.
About ISS
Founded in 1985, Institutional Shareholder Services group of companies (ISS) empowers investors and companies to build for long-term and sustainable growth by providing high-quality data, analytics and insight. ISS, which is majority owned by Deutsche Bourse Group, along with Genstar Capital and ISS management, is a leading provider of corporate governance and responsible investment solutions, market intelligence, fund services, and events and editorial content for institutional investors and corporations, globally. ISS operates on an arm’s-length basis and Deutsche Bourse has adopted Principles protecting the independence and integrity of ISS’ research offerings. ISS’ 2,000 employees operate worldwide across more than 30 global offices in 15 countries. Its more than 4,000 clients include many of the world’s leading institutional investors who rely on ISS’ objective and impartial ESG and governance research, market intelligence and fund services and data and analytics, as well as public companies focused on ESG and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS’ expertise to help them make informed investment decisions.
Media Contact:
Audrey Dedrick
Associate, Communications
press@issgovernance.com
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