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Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
London Financial-Clarity Breakfast Seminar 2013
Ian Beaumont
Chief Executive Officer Matrix Solutions 8.30am – 8.45am
1. Welcome from Matrix Solutions
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
This Morning’s Agenda
Time Event Speaker Location Duration Notes
8.00am Doors Open Aqua-Shard 32nd Floor, 31 St Thomas Street
8.00am Breakfast / Registration Hutong Shanghai 30 minutes Pastries & Hot Breakfast
8.30am Welcome from Matrix Solutions
Ian Beaumont, Chief Executive Officer, Matrix Solutions
Hutong Beijing 15 minutes Update on Market Intelligence
8.45am Market Insight Session Bella Caridade-Ferreira, Director, Fundscape
Hutong Beijing 15 minutes UK Industry Overview
9.00am Financial-Clarity Case Study
James Harris, Director Wholesale Marketing, Fidelity
Hutong Beijing 20 minutes Client Overview Presentation
9.20am Coffee Break Hutong Beijing 10 minutes Teas and Coffees served
9.30am Product Update Session Ian Beaumont / Richard Terblanche Hutong Shanghai 30 minutes Latest functionality
10.00am Financial-Clarity International
Diana Mackay, Founder, Mackay Williams
Hutong Beijing 15 minutes Introduction to Cross border fund flows
10.15am Nucleus Case Study David Ferguson, CEO, Nucleus Hutong Beijing 15 minutes Client Overview presentation
10.30am Questions Questions to all Speakers Hutong Shanghai 15 minutes General Q&A session
10.45am Close / Coffee Break Hutong Beijing 15 minutes Coffee break for Usergroup attendees / Departure for others
11.00am 1 hour optional user-groups
David Lovell / Guy Edsall / Richard Terblanche
Private Dining Rooms / Dickens Suite
Hutong Dining Rooms / London Bridge Hotel - Dickens Suite
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
New clients for 2013
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
2013 Financial-Clarity Survey
• Over 600 sales and marketing professionals using FC dashboards • Over 130 respondents to our survey
• More than 70% use Financial-Clarity daily or weekly
• Highest usage among firms with Total-Clarity CRM integration
• 70% of users are on the sales side with growing numbers in client
facing sales roles, marketing and product strategy
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
Recent Client Feedback
“When you weigh up the cost against the sales and marketing benefits, Financial-Clarity is a no brainer. We are here to grow our franchise and this is the ideal tool.”
Top 10 Sales Director
“Very happy with the Total-Clarity upgrade. I used to do this manually. Now I just search and pull in the details. It has saved a lot of time and hassle and has definitely made a huge difference to us!”
Top 20 CRM Manager
“The Sales Director just told me Clarity has
transformed the way they do business” Industry Consultant
“Based on all the analysis, there is a clear winner - Matrix”
RFP verdict – Top 10 Sales Director
“I’m not surprised you have 100% renewal
rates” Top 10 Marketing Director
“Why have we taken
so long to get this??” Sales Manager
“This is going to tell us
about firms we’d never
heard of before. “ Top 20 Sales Manager
“The improvement over our previous
market insight is a big step forward but the
added CRM capabilities/integration makes
that step massive” Top 10 Sales Director
“You should be applauded for your client interaction. In the last year we have used webinars, face to face meetings, web-exs and telephone calls to educate the team – great customer service.”
Regular FC Field Sales User “What I like is that you don’t just provide
data, you provide solutions to business
problems.” L&P COO
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
What is Financial-Clarity?
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
Latest Innovations in Financial-Clarity
Q1 2013 Q2 2013 Q3 2013 Q4 2013
• First White-label version of MyLocalAdviser with Skandia.
• Launch of Financial-Clarity International Trial.
• Platforum Tie-up.
• Partnership with Experian to develop Consumer Profiling Application.
• Launch of MyMarketAnalysis for Advisers.
• Launch of Life & Pensions Trial.
• Launch of Sales Structure Tool.
• Total-Clarity 2.2.
• Launch of FC Consumer Profile.
• New collaboration features.
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
• Consumer profile focus – continuous dashboard
improvements
• Uniform look through of L&P, Platform and DFM propositions
• Total-Clarity integration refinements for Salesforce.com
• Improved integration with other CRM systems
• Full launch for Financial-Clarity International
• Your ideas - user group, survey & Customer Services feedback
What’s next for Financial-Clarity in 2014?
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
Meet the Team
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
Our CSR Strategy
We now sponsor over 60 children
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
Bella Caridade-Ferreira
Director Fundscape 8.45am – 9.00am
5th Annual Financial-Clarity Breakfast Seminar 2013
2. Fundscape Market Insight Session
Bella Caridade-Ferreira, MD, Fundscape Financial-Clarity Seminar, London, 31st October 2013
Impact and unintended consequences of RDR on
the UK
Pre-RDR predictions
Advice will become the preserve of the wealthy. A significant advice gap will open up.
Advisers will prune their businesses of unprofitable clients (or those unwilling to pay).
Even a proportion of mass-affluent /affluent are expected to be unwilling to pay for advice.
As a result of the three points above, direct-to-consumer (D2C) business will explode.
Charges will be driven down for fund managers and platforms.
Investment solutions will expand and passive business (trackers, ETFs) will grow exponentially.
Increased use of packaged solutions (DFMs, model portfolios, FoFs)
Q1 2013 gross sales marginally higher than Q1 2012: + +1%
Aggregation: platforms +12%, L&P: -5.2%, FMG: +7%
Direct-to-consumer business up by 32%
Bank business down by 19%
IFA business down by 5%
IFA numbers down from just over 30,000 in July 2012
to 26,563 in July 2013
The jury is still out, but in Q1…
Source: Matrix Solutions Financial-Clarity database
H1 2013 gross sales considerably higher than H1 2012: +28% Aggregation: platforms +34%, L&P: +40%, FMG: +18%
Direct-to-consumer business up by 68%
Bank business up by 5%
IFA business up by 20%
Employee benefit consultants up 80%
Adviser numbers starting to creep up and are 27,607 in
Sept 2013
…However, H1 is looking better
Source: Matrix Solutions Financial-Clarity database
…Context
Source: Matrix Solutions Financial-Clarity database
33.4%
14.6%
5.4% 1.3% 2.3%
£0
£5,000
£10,000
£15,000
£20,000
£25,000
IFA WM D2C Bank EBC
2012 2013
FM39.4%
L&P14.0%
Platform46.6%
0%
20%
40%
60%
80%
100%
2011 2012 YTD 2013
Direct L&P Platform
Q3 - hot of the press!
Source: Matrix Solutions Financial-Clarity database
Platforms account for 54% of gross flows in Q313
Gross new sales for Financial Advisers, WMs, and EBC
Q3 - hot of the press!
Source: Matrix Solutions Financial-Clarity database
Another strong quarter for advised retail.
Gross new sales for Financial Advisers, WMs, and EBC
Q3 - hot of the press!
Source: Matrix Solutions Financial-Clarity database
YTD numbers for customer-facing channels are all up… but some are more up than others
Gross new sales for FAs, WMs, EBCs comparing Jan-Sept 2012 to Jan-Sept 2013
…Context
Source: Matrix Solutions Financial-Clarity database
33.4%
14.6%
5.4% 1.3% 2.3%
£0
£5,000
£10,000
£15,000
£20,000
£25,000
IFA WM D2C Bank EBC
2012 2013
FM39.4%
L&P14.0%
Platform46.6%
0%
20%
40%
60%
80%
100%
2011 2012 YTD 2013
Direct L&P Platform
What’s changed?
OR
There may be trouble ahead…
Advice in the UK Pre-RDR advice model
WM Private banks High-end IFAs
Mass affluent
WMs IFAs
Banks
Retail IFAs Banks
* Fundscape estimates
Post-RDR advice model
HNW WM Private banks High-end IFAs
Retail
HNW
WM Private banks High-end IFAs
Mass Affluent
IFAs Banks Retail
Retail Zilch
~5-10% of UK
population*
~10-15% of UK
population*
Future of retail?
OR
Known and unknown unknowns
The clean and superclean share-class debate
Aggregation and/or distribution
Simplified and/or retail advice – the advice gap?
Investment propositions and fund concentration
Passive v actives
Competing products
Q3 – hot off the press!
Passives are up 42% on like-for-like sales in 2012.
Gross new sales for Financial Advisers, WMs, EBCs, D2C and Banks/BS
Source: Matrix Solutions Financial-Clarity database
Q3 – hot off the press!
ETFs are starting to make a come back - flows are 17% higher than 2012
Gross new sales for Financial Advisers, WMs, EBCs, D2C and Banks/BS
Source: Matrix Solutions Financial-Clarity database
Q3 – hot off the press!
But active funds are also kicking butt – sales are up 54% YOY.
Gross new sales for Financial Advisers, WMs, EBCs, D2C and Banks/BS
Source: Matrix Solutions Financial-Clarity database
Q3 – hot off the press!
Source: Matrix Solutions Financial-Clarity database
Multi-manager funds are growing more slowly: up 27% YoY
Gross new sales for Financial Advisers, WMs, EBCs, D2C and Banks/BS
Q3 – hot off the press!
Source: Matrix Solutions Financial-Clarity database
ITs the largest gainers: up 93% YOY
Gross new sales for Financial Advisers, WMs, EBCs, D2C and Banks/BS
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
James Harris
Director Wholesale Marketing, Fidelity 9.00am – 9.20am
5th Annual Financial-Clarity Breakfast Seminar 2013
3. Financial-Clarity client case study
Getting to know you
James Harris Head of Retail Marketing
What I’m going to cover
What are we trying to achieve?
The journey
Some lessons
35
I realise you’ve not come to listen to me…
36
What are we trying to achieve?
Drive firm level insight
Inform our segmentation strategy
Inform our contact Strategy
37
Know your clients
38
Source: client numbers and firm concentration Financial clarity. Numbers are indicative.
FIL Confidential Information
20,000+ advisers
21 direct consumer
businesses
600+ wealth manager firms
16 major platforms
% of Sales Sales Value No. of Outlets
50% £30,866,347,762 370
80% £49,386,156,419 1835
90% £55,559,425,972 3271
Single intermediary view (with walls)
39
Insight - market share and sales performance
• IFA share improved from 14% to 15%
• AM share improved from 15% to 17%
40
14%16%
13%15% 15%
16% 17% 17% 18%
28%
16%
27%
13%
18%
14%13%
23%
2%
10%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
100
200
300
400
500
600
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
IFA Asset Manager Insurance Companies Platform Unallocated
FIL'
s sh
are
SB S
ale
s (£
Mn
)
Channel-wise Quarterly SB Sales and FIL's share
FIL SB sales FIL share of channel (%)
*
14% 16%
14% 16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
200
400
600
800
1000
1200
1400
Q4 Q1 Q2 Q3
Total Market
Sector sales and FIL's share
FIL sales
FIL share of channel (%)
Sale
s (
£ M
n)
FIL
’s s
hare
12%
18%15% 16% 18%
13%19%
£1.2 Bn
£0.6 Bn
£0.9 Bn
£0.7 Bn
£0.4 Bn £0.4 Bn
£0.2 Bn
0
200
400
600
800
1000
1200
1400
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total SB
Sales
FIL SB Sales
Total SB
Sales
FIL SB Sales
Total SB
Sales
FIL SB Sales
Total SB
Sales
FIL SB Sales
Total SB
Sales
FIL SB Sales
Total SB
Sales
FIL SB Sales
Total SB
Sales
FIL SB Sales
City Scotland South West North South East West Midlands East Midlands
Tota
l Sal
es
(£ M
n)
Region-wise Sales of Strategic Bonds during the last one year
IFA % (Left Axis) Asset/Wealth Manager % (Left Axis) Other % (Left Axis)
FIL SB as % of Total SB (Left Axis) Total SB sales (£ Mn) (Right Axis)
Insight- regional sales analysis
41
4% 5% 6%5% 10% 6% 5%
£26 Bn
£14 Bn£13 Bn
£11 Bn
£6 Bn £6 Bn
£4 Bn
0
5000
10000
15000
20000
25000
30000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total Sales
FIL Sales
Total Sales
FIL Sales
Total Sales
FIL Sales
Total Sales
FIL Sales
Total Sales
FIL Sales
Total Sales
FIL Sales
Total Sales
FIL Sales
City Scotland South West North South East West Midlands East Midlands
Tota
l Sal
es
(£ M
n)
Region-wise Sales of the Total Fund Market during the last one yearIFA % (Left Axis) Asset/Wealth Manager % (Left Axis) Other % (Left Axis)FIL as % of Total (Left Axis) Total sales (£ Mn) (Right Axis)
Total UK Funds Market View*
Not Selling FIL Funds
IFA Count 4 1%
Mkt. Sales/Q £55 Mn 15%
sales/Q > £2.5 Mn FIL Sales/Q £0 Mn 0% Selling FIL sector
IFA Count 37 5% IFA Count 26 4%
Mkt. Sales/Q £289 Mn 79% Selling FIL Funds Mkt. Sales/Q £180 Mn 49%
FIL Sales/Q £49 Mn 81% IFA Count 33 5% FIL Sales/Q £49 Mn 81%
Mkt. Sales/Q £234 Mn 64%
FIL Sales/Q £49 Mn 81% NOT Selling FIL Sector
IFA Count 7 1%
Mkt. Sales/Q £54 Mn 15%
Not Selling FIL Funds FIL Sales/Q £0 Mn 0%
IFA Count 49 7%
All IFAs 0 < sales/Q < £2.5 Mn Mkt. Sales/Q £12 Mn 3%
IFA Count 709 100% IFA Count 302 43% FIL Sales/Q £0 Mn 0%
Mkt. Sales/Q £366 Mn 100% Mkt. Sales/Q £77 Mn 21%
FIL Sales/Q £60 Mn 100% FIL Sales/Q £11 Mn 19% Selling FIL Funds
IFA Count 253 36%
Mkt. Sales/Q £66 Mn 18%
FIL Sales/Q £11 Mn 19%
sales/Q = 0
IFA Count 370 52%
Mkt. Sales/Q £0 Mn 0%
FIL Sales/Q £0 Mn 0%
AM
Contact strategy - targeting trees
Target Group
42
Contact strategy – how do we differentiate?
43
Campaign Driven - all accounts: targeted according to holdings or preference
Service - all accounts
Top X accounts
Service & campaign +
Top Y accounts
Service & campaign + +
Top Z accounts
Engagement driven by
audience High value accounts
• Greater accessibility
• Greater Insight
• Bespoke marketing support
• Product development
• Pricing
FIL Confidential Information
Our approach
44
Agree business objectives
• A tiered client and prospect model
Segmentation design Define segment service model
Client experience design
• Agree common customer experience
• Agree experience differentiators
Finalise contact strategy Track & inform
• Agree Segmentation criteria (quantitative & qualitative)
• Business & sales
• NPS / ORC
• Sales force
• Impact assessment and prioritisation
• Implement plan
• Tool development
• Service structure - Key accounts, Campaign team etc
Lessons learnt
Strong governance and ideally your own data expert is key if integrating own data
Data education – nothing’s perfect!
Mandate use
It’s not just about sales…
It doesn’t stop on delivery
– Power users
– Closed loop
It’s a tool, not the answer
45
46
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
London Financial-Clarity Breakfast Seminar 2013
Teas and Coffees available in
the Hutong Shanghai area
4. Coffee Break
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
London Financial-Clarity Breakfast Seminar 2013
Ian Beaumont
Chief Executive Officer Matrix Solutions 9.20am – 9.50am
5. Financial-Clarity Product Update
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
• Technology upgrade – faster, shared bookmarks and notes, IPAD user experience
• Sales Structure Tool – allowing daily tweaks to teams and structures
• Total-Clarity 2.2 Salesforce.com integration
• Financial-Clarity Consumer Profile
Product Overview – New Developments
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
Platforms L&P
L&Ps WMs IFAs L&Ps WMs
Platforms L&P Wholesale
channels
D2C
platforms
Primary
business
channels Banks
Investment Universe (OEICs, SICAVs, ITs, ETFs, Shares, etc..)
Investors
IFAs
Experian
D2C
Platforms Banks
Consumer Profile Structure
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
Sales Structure Tool
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
Diana Mackay
Partner MackayWilliams
London Financial-Clarity Breakfast Seminar 2013
6. Financial-Clarity International
The where’s and how’s of business success outside the UK
Diana Mackay, CEO, MackayWilliams LLP
for Financial Clarity International, October 2013
In search of European opportunity
Agenda
1. Where, what and how big?
2. Ingredients of success and who
gets it right!
3. A quick word about RDR
outside the UK.
In search of wider opportunities
[Investors] are turning,
above all, to foreign fund
houses because of their
stability and transparency
of information
Insurance fund selector, Spain
Where are the biggest opportunities?
Cross-border portion of total AUM (€bn)
Data source: Financial Clarity – International, institutional and retail sales via third party channels from 23 cross-border
groups
CAGR data calculated over ten-year period to end-2012
Source of cross-border assets by region (€bn)
Cross-border assets are growing at a much faster rate than domestic:
CAGR of domestic groups – 4.2%
CAGR of cross-border groups – 13.4%
Where are the biggest asset pools?
Source of cross-border assets by country (%)
Data source: Financial Clarity – International, institutional and retail assets via third party channels from 23 cross-border
groups
Where are the biggest sales opportunities?
Data source: Financial Clarity – International, institutional and retail sales via third party channels from 23 cross-border
groups
Source of cross-border net sales by country (%)
What are investors buying from cross-border groups?
Data source: Financial Clarity – International, institutional and retail sales via third party channels from 23 cross-border
groups
Net sales of cross-border funds by sector (%)
Agenda
1. Where, what and how big?
2. Ingredients of success and who
gets it right!
What does it take to get to get noticed
The most important area
for innovation is the
relationship between the
fund manager and the
distributor. It will be the key
to success in the future
Fund of Fund selector, Sweden
Ticking all the boxes to tickle selector appetite
Product Quality
Brand
Price/Cost
Sales/Acc Mgt
Marketing/Comm
Client Service
Driver
1
2
3
4
5
6
2005 2006 2007 2008 2009 2010 2011 2012
Data source: Fund Buyer Focus
Critical ingredients
1. Segment your client base.
Know who you want to sell to.
2. Differentiate your offering from
that of your competitors.
3. Understand your client’s
business and demonstrate that
you do.
4. Inform by delivering accurate
and up-to-date materials.
5. Transparency in all things, but
particularly portfolios and
pricing.
Who gets it right?
Data source: Fund Buyer Focus
Agenda
1. Where, what and how big?
2. Ingredients of success and who
gets it right!
3. A quick word about RDR
outside the UK.
The ripples of RDR across Europe
The repercussions of RDR
in the UK are clearly going
to change the wider
industry on a fundamental
level.
Wealth adviser, Netherlands
Impact of regulation and local initiatives across Europe
RDR Complete
commission
ban
Adviser quality
control rules
New breed of
low cost
funds
MiFID 2
Transparency
regime and
court case
Thank you!
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
David Ferguson
Chief Executive Officer Nucleus 10.15am – 10.30am
London Financial-Clarity Breakfast Seminar 2013
7. Client Overview Presentation
Platform
s & some other
stuff.
Way, way back in 2007…
Distributors
Supporting
transactional
advice
Product-led
Paid for by fund
managers
Facilitators
Supporting
service-led advice
model
Customer-led
Paid for by
customer
Margins
98% of adviser firms have < 10
advisers and they look after 87% of
AUA
23% of adviser firms have 2-5 advisers
and >£10m AUA
- 65% of these have >£20m AUA
47% of adviser firms have <£10m AUA
- almost two thirds of these have <£5m!
50% of adviser firms generate <£1m of
new inflows per annum
- but 25% generate >£3m
0 1 2 4 8 16 20 25
Wrap
Fund supermarket
Q3 2012
Gross inflows Wrap v fund supermarket
Q2 2013
Wrap
Fund supermarket Source: Fundscape. Platforms into IFA market. Inflows over each period.
Q3 2012
Net inflows Wrap v fund supermarket
Q2 2013
2013 asset growth % in H1
0 5 10 15 20 25 30 35 40
Transact
Fidelity
Skandia
Cofunds
Std Life
Nucleus
Ascentric
Axa
Source: Platforum. Platforms into IFA market.
P2P re-registration
See FCA GC13/7
Share class conversions
CROS
S SUBSID
Y
RACE
TO THE
BOTTOM
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
London Financial-Clarity Breakfast Seminar 2013
8. Question & Answer Session
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
London Financial-Clarity Breakfast Seminar 2013
Ian Beaumont
Chief Executive Officer Matrix Solutions 10.45am – 11.00am
9. Close from Matrix Solutions
Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS
London Financial-Clarity Breakfast Seminar 2013
1. Data Integration, CRM & Salesforce – David Lovell
2. Financial-Clarity Dashboards – Guy Edsall
3. Financial-Clarity International – Richard Terblanche
10. User-group sessions from 11am – 12.00pm