Myddleton Croft, the Leeds based investment management firm, report that funds under management are up 11 per cent in the first quarter of 2013 to end of March and up a total of 30 per cent for the year to end of March 2013.
The firm has worked hard to build strong bonds with advisers (IFAs) and believe that the way forward is through successful, intelligent outsourcing which can lead to benefits for all concerned.
A recent survey done by VouchedFor on 223 advisers found that 97 per cent had taken on new clients post-RDR, while 81 per cent said that they hadn’t lost a client. Of the new clients, 40 per cent had not previously used an IFA.
IFAs now pride themselves on being able to manage their clients’ financial affairs from cradle to grave; be it a mortgage, life and health insurance, retirement planning, IHT planning, cash-flow forecasting, education costs, etc. This type of work involves regular contact with the people who fund their livelihood. It follows that they need as much time as possible to ensure that they know all there is to know about their clients.
Also their families; their friends; their clubs and social gatherings, in order to not only maintain their existing client relationships but to take on new clients so as not only grow the business but to replace those they lose through death.
There are outsourcing solutions for some of the major time-takers: paraplanning, will and trust writing, compliance, health and medical insurance, and last but by no means least, investment management.
Outsourcing these activities, along with investment in up-to-date computer software for client relationship management, compliance reporting and record keeping, should produce a business which is not only the envy of other IFAs but from which satisfied clients will benefit greatly, and, importantly, this should lead to a doubling of profits, at least.
There are still a few investment management firms who do not have their own IFA arms, who do nothing else but investment management and are focused on providing IFAs with a service which is fully complementary and which benefits the clients, the IFA and consequently the manager.
The short message is not to get bogged down in what has passed. All the benefits and profits are in the future, providing that IFAs can change for the better. There is a real demand for what IFAs do and, by taking on partners, these independents can ensure that the work is done well and profitably.
Myddleton Croft remains committed to developing strong working relationships with advisers to complement their range of financial service propositions www.myddletoncroft.co.uk