Strategy
Crossbridge Capital Joins Forces With Investment Giant
Crossbridge has offices in London, and also operates from Singapore, Monaco and Malta. In Asia, it is an example of the rise of independent wealth management firms taking shape over the past decade or more.
International wealth firm Crossbridge Capital has teamed up with $609 billion investments firm Dimensional Fund Advisors to serve financial advisors and clients, it announced yesterday.
Crossbridge, which was established a decade ago and has offices in London, Singapore, Monaco and Malta, will blend Dimensional's resources with tailored investment strategies on the CONNECT by Crossbridge digital platform. The Turnkey Asset Management Platform – “TAMP” service is one of the first in Asia, Crossbridge said, allowing it to exploit growth white-labelled asset management solutions in the region.
"More and more financial firms are using or exploring the adoption of white-labelled asset management solutions as they seek to delegate aspects of their asset management business either for efficiency or revenue growth," Charlie O'Flaherty, partner and head of digital strategy and distribution, at Crossbridge Capital Asia, said.
The use of contracting providers and platforms such as TAMPs has increased in recent years because advisors want ways to deepen customer relationships and stand apart in a crowded market.
Crossbridge cited figures showing that over the past five years, the independent channel has grown faster than the traditional channel (11 per cent a year versus 9 per cent) while independently advised assets are expected to increase from $8.4 trillion in 2017 to $12.1 trillion in 2022, representing about 48 per cent of overall advisor assets (source: The Motley Fool). The value of assets managed on TAMP platforms is also predicted to expand from $7.4 trillion in assets in 2018 to $13 trillion by 2024 (source: Tiburon Strategic Advisors).
With only an estimated 27 per cent of financial advisors currently outsourcing investment management via TAMPs, there is significant room for further growth, Crossbridge said.
Note: The figure of $609 billion AuM for Dimensional was based on 31 December 2019.
