25th February 2011

Ascentric new business up 189%

New assets under administration were up 189% to £1,217m in 2010 marking a record year of growth for the independent wrap platform. This contributed to a 119% increase in funds under administration of £2,530m.

A key driver for this growth was Ascentric’s success in attracting new firms of advisers to the platform, with 266 firms signed up during the year. There are now more than 2,000 individual users set up on the platform that led to a near doubling of customers to 23,241.

Hugo Thorman, Managing Director at Ascentric, commenting on this performance said, “This has been the most significant year in our development since we launched in 2007. Significant not only in the way that growing numbers of advisers have embraced our proposition by placing more and more business with us, but also in the way the company has managed to accommodate these extraordinary levels of growth. It’s testament to the team working here at Ascentric as well as the continuing support we have received from adviser firms and our white label clients.”

A significant trend during 2010 was the growth in demand for Model Portfolios. Around 28% of the platform’s FUA is invested in Model Portfolios, highlighting the increasing need for technology to provide investment tools that offer repeatable best practice.

A further success story has been Ascentric’s Self Invested Pension Plan (SIPP). Launched in April 2009 as a transparent, low cost complement to the other products available on the platform, the Ascentric Pension Account attracted over £200m from 1,593 new customers. While assets in APA represented 11% of total AUA, around 30% of assets are held with 43 third party pension partners reflecting the need for product diversity.

Adviser demand for product choice was also reflected in the increased use of ETFs which accounted for 19% of Ascentric’s dealing volume in 2010 and is now as high as 26%.

The Retail Distribution Review has been another driver in the success of Ascentric during 2010. Thorman added, “Market conditions and uncertainty around the regulatory environment have played a major role in generating impetus for our business. These results show that Ascentric is well placed to capitalise on the opportunity presented by the RDR, irrespective of the outcome on cash rebates.”

Agreements were also reached with Intrinsic, Towergate PCP and Succession Advisory Services for white label platforms in 2010, providing access to further substantial market distribution. “The future is very exciting for Ascentric”, commented Thorman. “We have ambitious plans for growth and firmly believe that through the clarity of our proposition, its fit with the emerging needs of the market and the speed and quality of our technology developments, we can achieve sustainable profitability in 2011 and beyond.”

Wraps & Platforms