- There is a mythical cut-off figure of around £50,000 as potential clients with less than this to invest are not seen as financially viable for the larger discretionary service providers;
- Overall the number of advisers in the UK is falling and it is the regions that are suffering more than most;
- If there are less advisers dealing with a lower volume of clients then they will need less investment partners to deal with.
- Bestinvest has around 200 staff, the majority of who are in London. Even though it acquired Haines Watts just over four years ago giving it a national network of advisers it still has a limited regional investment management presence, with none at all in the regions that Tilney is well represented – Birmingham, Edinburgh, Glasgow and Liverpool;
- Around 40% of Bestinvest’s investment business is execution only, which is 40% more than Tilney has so together they can immediately offer clients a far broader proposition;
- Bestinvest’s portfolios are made up of collectives, including open-ended funds, investment trusts and ETFs; around 250 IFAs use Tilney which was borne out of a traditional private client stockbroking business and still retains an emphasis on equity research. Tilney has a very strong direct UK equity and fixed income research and investment capability and, according to Jason Hollands, Bestinvest’s managing director, business development and communications, they will continue to receive Deutsche Bank’s equity research;
- Bestinvest offers an investment solution whether a client has £1,000 or £1m to invest; Tilney’s typical client in its managed portfolio service will have around £100,000 to invest with £1m being a typical amount for its discretionary proposition. Combined, they can offer a broader proposition to more individuals.
A proper all-service offering