BT s Wrap. Rob Coombe Head of Asset Accumulation BT Financial Group April 2003

Transcription

1 BT s Wrap Rob Coombe Head of Asset Accumulation BT Financial Group April 2003

2 BT Financial Group BT Financial Group Asset Accumulation Investment Management Life New Zealand Product Marketing Distribution Customer & Business Services Broking Wrap

3 BT s Wrap platform BT first launched Wrap in November 1997 First custodial wrap structure in the Australian marketplace Initially launched as a Private Label service to financial advisory groups Launched BT Wrap in September 2001 for independent financial advisers

4 Mar-00 Sep-99 Jun-99 Mar-99 Dec-98 Sep-98 Jun-98 Mar-98 Mar-03 Dec-99 Dec-02 Sep-02 Jun-02 Mar-02 Dec-01 Sep-01 Jun-01 Mar-01 Dec-00 Sep-00 Jun-00 Growth in Wrap Growth in Wrap Funds Under Administration $m Source: BTFG

5 Master Trust & Wrap FUA Dec 2002 Operator FUA ($M) Mkt share Rank National/MLC 36, % 1 AMP Financial Services 20, % 2 AXA 16, % 3 BT / Westpac 15, % 4 Asgard Capital Management 12, % 5 Commonwealth/Colonial First State 12, % 6 ING Australia 9, % 7 Navigator (including Super Solutions) 8, % 8 Macquarie Wrap Solutions 6, % 9 Tower Holdings Australia 4, % 10 AM Management Ltd 2, % 11 IOOF Ltd 1, % 12 Royal & Sun Alliance Financial Services 1, % 13 Synergy Capital Management 1, % 14 GRAND TOTAL 149, % Source: Assirt Market Share Dec 2002

6 Master Trust & Wrap net flows: Dec 2002 Operator Source: Assirt Market Share Dec 2002 Net flow for Quarter % of Quarterly flows Market share ranking Commonwealth/Colonial First State Group % 6 BT / Westpac % 4 Macquarie Wrap Solutions % 9 Asgard Capital Management % 5 AMP Financial Services % 2 ING Australia % 7 AXA % 3 IOOF Ltd % 12 Navigator (including Super Solutions) % 8 National/MLC % 1 Tower Holdings Australia % 10 Synergy Capital Management % 14 Royal & Sun Alliance Financial Services 0.00% 13 AM Management Ltd % 11 GRAND TOTAL 2,974.76

7 Market Size/Leaders Setting the Scene 367 master trusts and wraps operating 3.4 million investors Master Trusts = $131B Wraps = $17.5B Cerulli estimates annual Wrap growth of 35% BT Wrap growth in 2002 = 42% Flows (%) 5 Flow & Market share leaders * CBA* BT * Macquarie * Asgard* AMP * ING * Navigator * AXA * NAB Market Share (%) Sources: Assirt Market Share Report Dec 2002 & Rainmaker Distribution Platform report 2002

8 The market place Next 3 years; see growth in platforms subsiding Big players to get bigger Market is partitioned: Wrap Open Architecture Platforms Mega Master Trust Platforms Customised Fund Mgr Master Trusts BT Macquarie Asgard Navigator Summit Colonial Scandia

9 BT s Wrap platform - product details Mark Smith, Head of Wrap Product Michaela McGlinn, Senior Product Manager April 2003

10 BT s Wrap offering $7.6 billion in FUA 32 Dealer groups 3,000 advisers 41,000 investors Investment Wrap (general investments including DIY super) SuperWrap (personal super and allocated pension)

11 What is Wrap? Investment and superannuation administration service Wraps around a portfolio of cash, shares, managed funds and personal assets Margin Lending and options E-business platform Suite of consolidated reporting

12 What is Wrap? Investor Investment advice from advisor Advisor transacts online Advice and Information Cash Account Investment solution Wholesale Managed Funds Listed Securities Consolidated reporting to investor and advisor Ongoing service Printed reports Voice Response WrapConnect

13 Master Trusts and Wraps - the differences Wrap products investor recognised as owner of investments Master Trust trustee is recognised as owner of investments Wrap: Key differentiators Choice Control Flexibility

14 Wrap - Investor benefits Single view of a wide range of assets Access to information is 24x7 via the web Switching to other assets is seamless Consolidated reporting for investments and tax Tax at the individual level All super and allocated pension legislative responsibilities are completed by SuperWrap

15 Wrap - Adviser benefits ease of administration A platform that wraps around a broad spectrum of the investment universe Web enabled transacting on managed funds, ASX-listed securities and cash Outsourcing of regulatory reporting of their relationship with the client via personalised branding

16 Wrap - Adviser benefits flexibility and power Wrap facilitates flexible and transparent fee charging methods The ability to use preferred software planning tools in association with the Wrap platform Fund management tools incorporated Rebalancing to preset asset allocations Performance v benchmark reporting Drill down asset allocation on managed fund

17 Defining BT Wrap from the pack Open architecture approach Desktop, offer documents & reporting customisation Service model Up front and ongoing training and support Transitions team Adviser relations Operational infrastructure