There is an international version of the platform for expatriates which makes use of the administration facilities and services of Moventum, the established Luxembourg offshore fund platform provider, which has as its custodian the Banque de Luxembourg, according to Michael Fordham, managing director of Platform One.
The launch of the new platform comes at a time when the use of such entities as a means of consolidating and looking after client portfolios is rapidly expanding, but – particularly for British clients who live outside the UK – the choice of options has been limited.
Platform One’s entry into the offshore market was referred to by International Adviser earlier this year in an article on the growth of the offshore platform market,
‘Land grab’
Fordham says Platform One’s high end approach was taken in response to what the company’s founders saw as a neglected area in the fledgling, but rapidly growing, platform market. Like most new markets he says, it has been characterised by a “land grab” approach, as most of the entrants rush to take advantage of being so-called first-movers.
“There is a need in every new market which emerges for a premium, top end service,” Fordham noted.
“At Platform One, we’re looking at the top end only.
“So instead of trying to be a Tesco or a Sainsbury, and grab the high street – in this case, the high street of IFAs – we are aiming to be the platform market’s Fortnum & Mason’s.
“Our vision was to create a premium platform which could handle, and give access to, premium products, to meet the needs of high net worth clients.”
Fordham, a serial entrepreneur in investment systems and administration businesses, is also one of the original founders of Ascentric, the Bath-based UK wrap platform. He is among a number of individual investors with a stake in the business, the main shareholders of which are six investment companies and advisory firms: the WAY Group fund management company of Wimborne; Ward Goodman Financial Services, a Dorset-based financial adviser; London-based Cheviot Asset Management; and three pensions administrators – Gibraltar-registered London & Colonial, Surrey-based Section 615 Ltd, and Salisbury-based European Pensions Management.
Both the UK and international Platform One operations have been up and running since late last year, according to Fordham, who is based at the company’s offices in Wimborne, Dorset, to enable the shareholder companies to test the new systems and facilities ahead of today’s formal launch.
‘Huge’ potential market
Fordham said the size of the potential platform market is thought to be "huge" and thus far relatively untapped. Although at present only about £150bn worth of investor assets is thought to be held on UK platforms at the moment – including fund supermarket platforms – experts estimate the potential volume could run as high as £1.8trn, he noted, while the comparable figure in what he calls the “Anglo-saxon” offshore universe is believed to be around £150bn to £180bn.
"We’ve only scratched the surface with wrap platforms at the moment."
Specialist HNW services
Fordham repeatedly returns to the Fortnum & Mason’s analogy when describing Platform One and its international sibling, and the range of products and services they will provide. As “whole of market” platforms, they will, he says, provide access to all manner of specialist products and services designed specifically for HNW clients, such as IHT planning products geared for the top end of the market; specialist trusts, flexible pension provisions, open annuities, offshore pension investment, and bespoke discretionary management facilities.
These, he explains, along with such planned offerings as specialist underwriting for such assets as art, exotic cars and yachts, are like the "lovely chocolates and Beluga caviars" people look to Fortnum’s for, even though the store also sells "basic things like bread, butter and milk".
Fordham said the offshore platform in particular is seen as a natural home for the qualifying recognised overseas pension schemes of wealthy individuals who have left Britain for good.
"We’ve been talking to a number of QROPS providers and we hope to announce the names of some of them soon."
Charges
As is customary in the platform world, Platform One charges its clients based on a percentage of the total value of assets held, and also whenever they buy or sell assets, typically shares and collective investment funds.
In the UK the percentage starts at 0.3% of assets – which is what someone with a £1m portfolio would pay – and declines to 0.03% on assets of £5m or more; transaction fees are £15 if automatic and £25 for manual trades.
International fees are slightly different, beginning at 0.45% of assets and again, declining as more assets are added. Transaction fees for collective investments range from €5 to €25 if they’re done electronically and €25 to €50 if manual, according to the company.
