15th April 2015

FundsNetwork™: Conversion – the story so far

2014 already feels like a very long time ago. It’s now nearly a year, but feels much longer, since we announced our conversion approach, with both the voluntary event at the end of last year and the platform event at the end of this year. So time for a progress report.

First, the positive. By going out early with our message we’ve received much feedback that we have helped firms to plan the move to fees and clean share classes. This was reinforced by our ‘Take Control’ seminars last summer, which were designed to help you understand the issues involved in conversion, for your clients and your business, and take appropriate action. We have seen and continue to see the results of this as, month by month, assets with adviser fees associated continue to rise rapidly.

However, our data also reveals a significant number of firms which have yet to make a major move to fees, and we will be taking steps to engage with you if you fall into this category. One variant of this theme, which we have picked up on from talking to adviser firms, is that the “active” client bank has been moved to fees while “lower value” clients have been left on commission. Whether you move your clients to fees is your choice (and theirs), however we would advise taking an active decision if you are in this situation, so you can manage any revenue impact. We have a number of reports available through our online services that can help you make these decisions.

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Wraps & Platforms, Investments