German-speaking IFAs are being given the chance to offer their clients tailored fund portfolios whil...
German-speaking IFAs are being given the chance to offer their clients tailored fund portfolios while their commission is calculated for them with the Diamos-D software, which also conducts all back office administration.
Diamos-D is also sold to asset managers, banks and fund platforms. Norman Falkenberg, board spokesman of Diamos, said the development of the software has been driven by a number of factors. "The growth in the IFA community has led to asset managers and fund platforms keen to gain inflows from this market.
"IFAs have been looking for ways to differentiate themselves from other advisers. Until now they have mostly been providing clients with standard funds because they did not have the administration capability to cope with more esoteric asset classes and funds. This is why we have designed Diamos-D, so that IFAs can structure portfolios specifically for each client by using any asset class and fund they want."
Falkenberg adds that the other trend has been the payment of commission in the first year of a product by providers of long-term savings plans. "For a 20-year savings plan, the asset allocation will change over time. For the first 10 years, it will be more aggressive with a high exposure to equities but for the last 10 years there will be an increased allocation to bonds.
"Diamos-D automatically calculates the commission using the Zillmer formula, which calculates the commission on products in such a scenario so it can all be paid to an adviser in the first year, as well as undertaking all the administration on the product. IFAs are keen to receive the commission in the first year."
Diamos-D is available in Germany, Austria, Switzerland and Luxembourg. Falkenberg said Diamos planned to offer its software in the UK as well.
Annuity market worth £4bn in 2017
For ‘distress’ caused
Oversees £30bn of advised and D2C assets
Less than a third of top paid employees are women
£1bn business since inception