IRESS LIMITED Iress and OneVue delivering end-to-endinvestment infrastructure
November 2020
Leveraging market-leading strengths
The combination of Iress' technology footprint and OneVue's market-leading managed fund admin business provides a unique opportunity to deliver end-to-end investment infrastructure.
2
OneVue key metrics - scale in managed fund admin
750
Recent client migrations
transactions
per 6 months
funds
3
Investment infrastructure that will benefit all participants
Iress and OneVue combined will provide open infrastructure to enable the industry and investors to transact and report seamlessly.
Improved efficiency and transparency for all participants.
Clear plan to integrate and deliver new investment infrastructure-as-a-service to clients from 2021.
OneVue | Iress |
Investment infrastructure
4
Advisers seeking desktop as core system
Advisers use more than two platforms on average.* 40 percent of advisers use more than two platforms (this has increased from 31% in 2012).
Approximately two-thirds of advisers want client data to be aggregated in adviser software. This increases to 78% for advisers in the 18-35 age group and is broadly consistent across different types of licensees (e.g. dealer group, independent).
Why?
If one source could aggregate all client data, what would be your preferred system to use?*
5
Today: complex, disconnected, and inefficient
Over time, financial services infrastructure has developed multiple layers adding cost, complexity and risk.
Simpler end-to-end technology is more efficient and creates a better experience for all participants - including investors.
Investor | 60-185 bp | |
→
Distribution
Investor &
Member
Admin
Asset
Management
Investment Manager
6
Inefficiencies for the industry and investors
Investors
High cost to transact
and hold assets.
Limited access to
consolidated balance sheet.
Limited options for advice for the right things at the right price.
Don't want paper-based forms or clunky online execution.
Contributing factors
Tools have been developed to serve
particular needs over time.
Not a one-size-fits-all system.
Lack of scale as technology is not
at the core of the proposition and system.
Duplication across technology and operations.
Cost and margin pressure.
Increasing regulatory scrutiny.
Advice businesses
Fragmented, multiple
systems across advice and execution drives inefficiency and compliance risk.
Challenge to deliver different
types of advice profitably.
Restricts options for growth.
Fund managers
Limited connection to investor.
Delivery of product to advisers is too slow via traditional methods and layers.
Limited automation options.
7
Iress' infrastructure extended by OneVue acquisition
Technology and investment infrastructure.
Investment technology delivered as-a-service (subscription & usage basis).
- Digital
- Open
- Connected
- Straight-through
- Efficient
- Cloud first
Investor &
Adviser &
Investment
Manager
Brand | Super fund | Broker | Platform | |||
Iress Open API
Iress' investment ecosystem
Technology | Investment Services | |||||||||||
Advice | Investor & member | |||||||||||
administration | ||||||||||||
Execution | ||||||||||||
Unit registry | ||||||||||||
Trading | ||||||||||||
Model management | ||||||||||||
Portfolio | ||||||||||||
Licensing - managed | ||||||||||||
Compliance | accounts, super, non-super | |||||||||||
Custody & sub-custody | ||||||||||||
Blockchain | ||||||||||||
administration | ||||||||||||
Iress Open API | ||||||||||||
Robo-adviser | Model manager | Fintech | ||||||||||
Direct Assets
Managed funds
Equities incl. quoted funds
Fixed income
Other asset
classes
Custodians
8
Iress to deliver seamless execution of advice via Xplan
Investment
recommendation implemented
Client contacts
to discuss financial
plan
Confirmation | Adviser reviews | |||||||||
received for | and provides | |||||||||
each change | recommendation | |||||||||
Each instruction is | Record of | |||||||||
processed by each | advice issued | |||||||||
of the providers | and agreed | |||||||||
Implementing | ||||||||||
investment | ||||||||||
recommendation | ||||||||||
Delivers significant benefits to advisers:
An actual adviser experience currently:
9
Benefits for all participants across the value chain
Retail financial services | Retail broker | Super funds | Fund manager | |||
Wealth manager | Fintech | Robo-adviser | Custodian | |||
Investment infrastructure-as-a-service
10
Appendix
Pro forma results, synergies and balance sheet
Proforma Combined Profit and Loss Statement for the 12 months ended 30 June 2020
Iress | OneVue | Adjustments2 | Proforma Combined | |
Operating revenue | 537.9 | 49.1 | (0.7) | 586.2 |
Operating expenses | (388.0) | (42.5) | 0.7 | (429.7) |
Segment Profit | 149.9 | 6.6 | 0.0 | 156.5 |
Share based payments | (19.9) | (1.3) | (21.2) | |
Non-Operating Items1 | (0.8) | (27.2) | 27.2 | (0.8) |
EBITDA | 129.1 | (21.9) | 27.2 | 134.4 |
Depreciation | (24.0) | (2.0) | (26.0) | |
Amortisation4 | (14.5) | (4.3) | (18.8) | |
Interest | (8.7) | (0.8) | (9.5) | |
NPBT | 81.9 | (29.0) | 27.2 | 80.1 |
Tax3 | (20.9) | 0.5 | (20.5) | |
NPAT | 61.0 | (28.6) | 27.2 | 59.6 |
12
Contact
Andrew Walsh, CEO John Harris, CFO
+61 3 9018 5800
iress.com
Attachments
- Original document
- Permalink
Disclaimer
IRESS Limited published this content on 24 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2020 08:10:00 UTC
