BlackRock's MyMap funds join Fintel's Risk Controlled investment range, strengthening UK adviser offerings
Fintech specialist () announced a significant expansion to its distribution agreement with BlackRock. Under the expanded partnership, BlackRock's My Map funds will join Fintel's Risk Controlled investment solutions.
Today's announcement builds on the managed distribution agreement that BlackRock has had with Fintel since November 2020, and follows Schroders, Fidelity and Aviva, who have also partnered with Fintel.
Neil Stevens, Joint CEO of Fintel, commented: "We are delighted to extend our Risk Controlled solutions to BlackRock MyMap Funds. It is fantastic to see a world-leading asset manager focussing its fund research and transparency around clear client outcomes, that can be properly and independently analysed by professional advisers using our software. This will deliver better outcomes for all. Our connected research and planning platform is a unique opportunity for asset managers and advisers to tailor portfolios and solutions for clients that ensure ongoing advice suitability is maximised".
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The integration of BlackRock's MyMap funds into Fintel's Risk Controlled investment range is in line with the industry's increasing focus on providing highly tailored investment products under unified platforms. The partnership is a testament to the growing influence of Fintel, which has already brought onboard financial giants like Schroders, Fidelity, and Aviva.
The Risk Controlled investment range, delivered through Fintel's subsidiaries SimplyBiz and Defaqto, aims to enhance adviser efficiency and better cater to consumer preferences and risk profiles by optimally aligning products to the advice and research processes powered by Defaqto.
In this way, the Risk Controlled range streamlines the selection process, helping advisers choose from a range of funds developed by a growing number of providers, all managed in line with investment and risk parameters selected by clients. Therefore, as the number of partners grows, so does the appeal of Fintel's offering.
On BlackRock's side, the MyMap range is already designed to offer consumers a simple range of cost-effective funds matched to their risk preference, making it suitable for integration into SimplyBiz's Risk Controlled investment platform.
Fintel has been heavily investing in its business this year, recently announcing the acquisitions of MICAP and Competent Advisor, two technology platforms which collectively serve over 15,000 users. MICAP brings independent research and advice tools for tax-advantaged investment products, expanding Defaqto's reach into that market, while Competent Adviser is a dynamic learning platform that enables advisers to meet increasing regulatory competency requirements. Defaqto itself was acquired in 2019 for £74.3m (of which ~50% was borrowed), and has since doubled profits and repaid all borrowed cash.
These acquisitions complemented Fintel's recent investment in CRM specialist Plannr Technologies through Fintel Labs, and strengthening of its longstanding partnership with Intelliflo through a new 5-year technology contract for its member firms.
Despite the heavy investment, Fintel ended the half-year with a cash position of £13.3m, driven by continued robust operating cashflow conversion, which climbed 4% and exceeded 100% of operating profit. Alongside an undrawn 4-year £80m Revolving Credit Facility, the group has significant firepower to fund organic investment and further M&A opportunities.
Fintel's long-term growth prospects are underpinned by regulatory and structural changes in the UK financial services market, not least the increased regulatory burden around consumer duty and the rising adoption of technology and data-driven services. With a strong balance sheet and a robust M&A pipeline to complement recent acquisitions, the company looks well-positioned to accelerate growth and deliver further strategic progress in the coming months.
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