ETF Report UK: Adviser Profile

January 16, 2015

The Challenging Road To Success

Despite the firm's success to date, it has not all been smooth sailing.

Breaking into the IFA space is a challenge in itself explains Lane. "We are still not on as many platforms as we should be, but it will come. The IFA space is a cautious one and it is tough to break into, but this is starting to change since RDR." 

Currently, Twenty20's iBaskets are available on Praemium and via management accounts. There are also plans to launch them on Transact and Ascentric in the near future. The firm can also be found on iShares' Connect programme, which is essentially where iShares lists its preferred suppliers of products. 

However, getting the right technology and systems to access platforms is an undertaking and Lane admits that today's world is a big data business, and as a firm, they need to ensure that they invest enough in the technology to keep up. This, of course, costs money and requires the firm to ensure that a virtuous circle is kept in motion. 

He says that to achieve scale they need to make a difference. "We have to partner with other firms to gain the level of distribution that ensures Twenty20 is heard in the marketplace. For that reason, finding a distribution partner for our ETF based Country Rotation strategy is the way to go." 

Twenty20 now has a team of five people and employs the mantra 'mass innovation and not mass production', which lends itself to addressing the needs of clients and not just that of the business. 

Lane advises anyone looking to ETFs for the first time to find someone who is already a user of ETFs and ask them for their opinion and help. "They'll find it isn't such a scary thing to do after all." 

"We will continue to place a lot of emphasis on empowering financial advisers with our white label offering, as in many cases they hold the key to our success. As for me, until that retail-institutional split reaches 35 percent – 65 percent, I don't think I can feel my job has been done," Lane noted.



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