• Group turnover increases 112 per cent to £27.5m;
• Group profit for the year increases 47 per cent to £5.3m;
• Number of Wealth Management Partners and staff rise significantly
Financial and technology services group True Potential has announced significant year-on-year increases in turnover and profits and a larger wealth management team.
Published in the latest Annual Report and filed with Companies House, the True Potential group of companies has increased turnover to £27.5m to the end of December 2013 – a rise of 112 per cent compared to the same period in 2012 (£12.9m). The financial year (ending 31st December) has delivered a profit of £5.3m for the group, a 47 per cent increase on the same period in 2012.
This strong growth is further reflected in the latest quarterly results, there are now 428 Wealth Management Partners (financial advisers) within True Potential Wealth Management, up 169 per cent from the same period last year when the firm had 159 Wealth Management Partners.
Neil Johnson, Senior Partner at True Potential LLP, said:
"With all distribution there is a time lag between the initial investment in bringing people on board and the eventual increase in profit as they go through their first full year with us. As a result, we expect our group profit growth to continue as it catches up with the increased turnover we have experienced. This can already been seen in our quarterly figures with profit up to £2.2m in the first quarter of 2014, an increase of 105 per cent on 2013.
"2013 was a pivotal and highly successful year for the True Potential Group. It was a year in which our investment in innovation and the strategies we have employed over previous years came together and began to flow through into measurable financial benefits."
In 2013, True Potential rolled out version six (V6) of its single integrated wealth platform, which brought together the three core elements of True Potential – the back-office system, the wrap platform, and client servicing tools, such as the firm's unique client websites.
Neil Johnson said the continued success of the Group was due to this technology-based business model, which has offered advisers a way of working effectively, efficiently and in a fully-compliant way, post-RDR.
He said: "Our strategy has been to build large-scale distribution by providing our Wealth Management Partners and authorised adviser firms with the tools they need to make good advice profitable. Use of technology and a flexible management structure has been the key to our continued growth, with our ideas developed quickly by our in-house technology development department.
"We're already making plans for future growth and we are now authorised to run our own pensions business, the administration of which will run on our existing platform. This opens up huge opportunities for us, especially with the new freedom to allow clients access to their full pension funds. This and other innovations currently in development have placed us on a strong footing and we are looking confidently to the future."
The True Potential group of companies, which includes True Potential Investments LLP, True Potential Wealth Management LLP, True Potential Adviser Services LLP and True Potential Adviser Services Ltd., is one of the fastest-growing financial services organisations in the UK.
The True Potential group of companies now has 158 employees and partners, up from 114 at the same time last year.
To maintain growth, True Potential has made a number of senior appointments. Laurie Edmans CBE has been appointed as non-executive director, bringing his wealth of experience to True Potential. Among his current positions, Laurie is chairman of Marine & General Mutual and of Trinity Mirror Pension Plan Trustees and a non-executive director of the Money Advice Service.
True Potential has also hired Sheriden Davy as Head of Risk and Compliance and Colin Beveridge as Chief Investment Officer as the company structures for continued growth. Sheriden Davy has extensive experience in compliance and pensions reform having been employed by the Department for Work and Pensions, MyCSP Ltd, and most recently with BlackRock where he was vice president of compliance monitoring. Colin Beveridge's career includes time at The Alliance Trust PLC where he was Chief Investment Manager and at Scottish Widows Investment Partnership where he was an Investment Director. Most recently, Colin set up an evidence-based academic research and solutions consulting business called Long Horizon.
The new appointments continue a highly successful first quarter for True Potential, which has seen the company make several key announcements:
Gold Sachs Income Builder
True Potential recently announced the addition of a new Goldman Sachs Asset Management (GSAM) income strategy fund to its Wealth Platform on an exclusive distribution deal. The Goldman Sachs Global Income Builder portfolio by Goldman Sachs Asset Management provides investors with attractive and sustainable yields of 4.5%-5.5% and capital appreciation by dynamically managing a portfolio of global equities and bonds. The Global Income Builder portfolio will make monthly income distributions and is competitively priced with the ongoing charge being 0.9% pa.
The fund, which has an asset allocation of 60% fixed interest and 40% equities, will appeal to investors who are seeking a regular income from their portfolios but with less volatility than traditional equity markets. It is managed by the same Goldman Sachs Asset Management team that manages the $1bn + Income Builder fund in the US.
In March, True Potential Investments LLP launched the UK's first investments 'top-up' technology ImpulseSave® to clients of True Potential powered adviser firms, including True Potential Wealth Management. ImpulseSave® is a first-of-its-kind service that allows micro-payments to be transferred directly into investments at the touch of a button, making it easier for clients to save into their previously advised investments while enhancing relationships between advisers and their clients. For advisers, this new service can strengthen their client value proposition and keep them actively engaged with those clients who may not need additional advice and/or those who prefer the ease of saving on demand. ImpulseSave® allows clients to add as little as £1, or as much as they need to close their 'gap to goal', whenever they wish to keep their investment goals on track or to reach their goals faster. There are no transaction fees for ImpulseSave investments.
March also saw the launch of True Potential Investor, an online service that is designed to simplify investing and encourage a 'goal' and 'impulse' based saving culture. Using the same award-winning technology used by 22% of UK Financial Advisers, True Potential Investor can be accessed by the general public via the web (www.tpinvestor.com) and on any mobile device thanks to its use of responsive technology. An iPad and iPhone app is also available for download. To simplify the investment process and make decision-making easier, the company has carefully constructed a core range of risk-mapped multi-asset funds from the 16,000+ available on the True Potential Wealth Platform. True Potential Investor also includes ImpulseSave®.
True Potential Associate Partners
In March, True Potential announced the launch of True Potential Associate Partners, a new distribution arm that complements the group's other distribution channels. True Potential Associate Partners offers a modern alternative to the old network and national models that have become outdated with the introduction of the RDR in combination with trends in society and technology.
True Potential Centre for the Public Understanding of Finance
True Potential has also partnered with the Open University to launch the True Potential Centre for the Public Understanding of Finance (PUFin) to improve public understanding of personal finance through its research and the delivery of free modules – the first of which is expected to be launched in the May.
True Potential received a number of accolades at the Money Marketing Financial Services Awards 2014. True Potential Adviser Services picked up the Best Support Service award for the third consecutive year. True Potential Wealth Management also won gold for Best Use of Technology by an Adviser and was runner up in the Adviser Firm of the Year Award.
For more information about True Potential LLP, please visit www.tpllp.com.