Tackling the dabbit:What is a product provider & what is a platform?As we see more AUA falling under the stewardship oflife company and asset manager platforms, a naturalquestion to ask is: why is this taking place? Someargue it is a drive to capture more of the value chainand control distribution of their product (asset/unit/pension) but how does that stack up against the flowof investments?Looking across the top 10 holdings by AUA for advisedplatforms [Table 1] we can see a big chunk of assetssitting with Vanguard, almost twice that of Quilter andFidelity. Vanguard also comes out on top when welook at where buy orders are being placed, slippingbehind HSBC and LGIM for net flows. [Based on 2022AUA and flows data provided by Finscape]If we apply the broad platform parentage classificationto the Finscape data, then with the lion’s share ofAUA sitting with ‘wraps’, we will look there first to seewhere some of that might sit [Table 2]. Vanguard comeout strong in both level of holdings and proportionof inflows. The interesting entries in this view areOmnis and Seven IM, which point to the positionof multi-asset and risk-based solutions in the openarchitecture mix for retail advised platforms. Valu-Tracadds another interesting dimension where, as an ACDfor smaller fund managers, wealth managers, and aplatform, they show that a movement of assets andinflows are moving beyond the big names, or in anecho of how platforms have become providers, modelportfolios are becoming unitised funds.All PlatformsWrap PlatformsAsset ProviderProportion ofClient AUAProportionof InflowsVanguard9.38%10.10%Quilter4.76%FidelityProportion ofClient AUAProportionof InflowsVanguard10.09%12.94%2.25%Omnis Investments Ltd9.55%4.97%4.53%5.16%BlackRock4.58%8.58%BlackRock4.07%7.32%Fidelity3.53%5.54%LGIM3.85%5.08%LGIM3.30%5.73%HSBC3.08%3.88%Dimensional3.15%5.09%Liontrust3.05%2.27%3.03%1.75%RLAM2.90%3.68%Valu-Trac InvestmentManagementOmnis Investments Ltd2.89%1.90%HSBC2.45%3.88%Abrdn2.51%2.04%Baillie Gifford2.44%1.18%58.98%56.31%Seven InvestmentManagement2.05%0.73%The RestTable 1 - Market AUA by Asset ProviderAsset ProviderTable 2 - ‘Wrap’ Platform AUA by Asset Provider8
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