These are advisor lead platforms and this article will go over some of the top platforms for expats. These platforms have been picked for a number of reasons including the tech specification, cost, and fund range. This article will just cover advisor lead platforms as will aim to go over in another article non-advisor lead platforms which are in their own right competitive.
Novia – Number 1
Novia is a bit more expensive than DIY platforms and even more so for smaller amounts under $500,000 but what it has in cost it makes up for in tech specification. The only aspect I can think of that can be added is auto rebalancing.
Before we go on this is my opinion and I am not being paid to say this and I don’t have a particular bias towards any single platform. I have opted for an advisor lead platform to review and selected Novia as my best platform in 2022.
I have found this platform to be fast with easy applications and its share dealing is pretty straightforward. One, of the main criteria I look for when searching for a platform, is ease of use. As we are in 2022 you want something that can be done easily online.
With that in mind, I have come across a number of platforms that take months to go through compliance and accept applications. While Novia pretty much have it done in 24 hours in most cases and the ease of the application is pretty simple. Unlike some, which have a 49-page application repeating itself a number of times and require to be wet signed and mailed off. This may not be very easy if you live in an emerging country or an island in the middle of nowhere which many expats do.
The cost base cost of the platform is with charge B
- 0.45% for anything under $500,000
- 0.4% $500,001-$1 Million
- 0.3% $1 Million-$1.5 Million
- 0.2% $1.5 Million- $2 Million
- 0.1% $2 Million+
With the breakpoints, it can work out more competitive for large amounts and compete with the likes of Vanguard and Fidelity platforms.
The portal itself is pretty easy to use (see figure 1 below)
Figure 1: Novia Home Page Portal
It has aspects such as the investments research hub and risk profiler exante illustration, so for example from an advisor perspective, it allows me to give easy reports alongside any independent performance reports and select funds that are specific for your situation and risk profile as seen in figure 2 below.
Figure 2: Fund selection
This allows you or the advisor to look for funds easily. For example, below I was looking for low-cost Vanguard Index funds with an ongoing charge of less than 0.5%. This allows you to pick the specific funds with charges that you are looking for
Figure 3: An example of looking for index funds within a specific ongoing charges range (0.5%).
Also, when you click on the fund it gives a range of options to view about the fund that is powered by Trustnet. This allows you to look at the KIDD, Prospectus, Factsheet as well as the allocations, performance and risk.
From a client perspective, it’s easy to see the performance of the funds, holding and go in-depth as seen below of the demo holdings. You can really dig into the weighting and fund analysis (note this was one I set up a few days ago). As seen in the images below from a client perspective allows us to go into the funds and look into detail looking into the cumulative performance, risk, fund information.
Meanwhile, it allows aspects such as portfolio scan, comparison funds. (See images below).
Conclusion
For me, the simplicity of the platform and the ease of use makes it one of the top lead offshore platforms. I would put Ardan international as a close competitor but for ease of use and the breakpoint charging I prefer Novia personally in 2022 (both I think are feasible options as actually hold Ardan myself).
If I am to be critical, some of the disadvantages are you don’t have private equity options, hedge fund options, structured notes and a trading platform for crypto that some modern-day investors might want an element in their portfolio.
Also, the currency option could go a bit wider in major currencies. However, other than that its a feasible platform that would be happy to use and fits the modern-day investor needs of being fact easy to navigate affordably.
Praenium International – Number 2
This article will go over the Praemium International Platform, for me, this is one of the top advisor lead platforms in 2022, the other being Novia.
So, I want to go over this platform as I believe it is one that you should strongly consider as an expat investor and for advisors to recommend it more to clients
Who is Praemuim?
In its own words taken from the Praemium website:
“Praemium Limited was established in Australia in 2001 as a non-custodial reporting and administration provider and has since grown to be an award-winning provider of investment platforms, portfolio administration, investment management and CRM solutions with offices in Australia, UK, Jersey, Armenia, UAE, Hong Kong and China. The value of investments managed or administered by Praemium is now in excess of AUD$100 billion for almost 1000 financial services organisations.
Praemium’s clients include some of the world’s largest financial service providers, including Citigroup, Asgard and BlackRock.
Praemium launched its platform services into the UK market in 2008 and the international market in 2012, where it is now one of the fastest-growing discretionary platforms available.”
The company has offices in Australia, the UK, Jersey, Dubai, Armenia, Shenzhen and Hong Kong.
Praemium launched its services into the UK market in 2008, where it is now one of the fastest-growing discretionary platforms available.
In the UK, the Praemium group is regulated by the Financial Conduct Authority.
For me having a play around with the portal, is fairly easy and from a client’s perspective its easy to navigate and see your investments.
In terms of funds, it doesn’t have a full fund range but it is large enough to see the majority of investors through. You have a range of major currency options and have to keep 1% in the cash management account.
It works with wealth crafts that use the Oxford risk to help model portfolios and for advisors, this can be a useful tool to help automate the risk profiles.
As well as this you have CGT calculators, bulk rebalancing and portfolio analytics.
If you have transferred your pension, you have trust options as well as those looking for IHT planning, Praemium have the ability to wrap investments into a trust.
See the figure below for the portal specifics
The costs – now this is where it can be competitive in the cost range. As seen below the breakpoints are from 0.35% to 0.03% depending on your amount.
I have linked a PDF below, note that this is dated 2021 so it might be slightly out of date. However, they can be useful to read and go through.
https://www.praemium.com/media/4755/pil-due-diligence-2021.pdf
In conclusion, I believe that this is one of the top platforms in the expat space for a range of factors such as cost, platform specs, and stability.
I would highly recommend any expat to at least consider this option.
Ardan International – Number 3
For me, the tech specifics are weak with Ardan but does have auto rebalancing and model portfolios. Add to this the cost is more than other platforms for larger amounts is why it stands in 3rd place.
Ardan was originally a DFM originally owned by SJP in the Isle of Man, however, it was bought out in 2016 by IFGL which also owns RL360 and FPI. As these products are usually insurance-based bonds that charge higher fees IFGL thought it would change with the times and purchase a low-cost platform (Ardan), this follows the trend that the U.K had seen 15-20 years prior. Due to many finding offshore bonds too expensive.
Like other bonds the platform is based in the Isle of Man, this platform like others based in the Isle of Man suggest security and stability, The reasons why they chose the Isle of Man can be found on their site. Personally, I have not had a problem with the Isle of Man, plus due to its legal structure and it is a prominent financial hub I find it a good location to hold money.
More can be found here and I have done a number of blogs about locations for platforms.
https://www.ardan-international.com/about-us/why-are-we-based-in-the-isle-of-man.htm
It does have a wide range of funds on listed exchanges, it also has stocks on listed exchanges along with ETFs and notes. One important aspect is that this is not a trading platform so it is not traded live prices for the stocks.
Also, no hedge funds and crypto is presently on the platform.
It can come in 11 currency options, they are mainly the major currencies, the trading fees on the currencies are only 0.5% and can hold multiple currencies at one time.
You do have options to structure and set portfolios through the platform that can opt for instant rebalancing, sector and risk rotation depending on your preferences.
Ardan has a pretty simple structure with the fees, it charges a 0.4% platform fee including its custody fee and the entry fees into the funds are negotiable depending on the advisor but they start at 0% and are capped at 5%
The advisor fee as it’s an advisor based platform range from 0-2%. For example, if you wanted to choose Ardan and I was the advisor, it would be the platform fee and advisor fee as standard and then the fund fees might be on top.
Trading fees for ETFs and funds are 5 GBP plus stockbroker fees, of course, does vary but you could be paying around 30 GBP for the high-end funds. For a note, it is 40 GBP.
On top of that, you have active fund fees.
I have heard that they are getting a platform like Interactive Brokers that will keep the cost down as they can do it in house.
Also, it has 5 GBP costs with a transfer out.
We have touched on the jurisdiction of the Isle of Man. However, it is also worth noting that the company, as its site suggests, has $11.5 billion under management and 80,000 clients across the world.
It also uses a world-class custodian such as Citi Bank and Allfunds for the protection of funds.
The platform uses Morningstar and shows the gains, losses and currency. In terms of platforms, it is reasonable enough with good technology from Morningstar interpreted into the system.
My Thoughts
Firstly, as a disclaimer, this is my opinion and not any kind of advice.
For me, it is a good addition to the offshore platforms and has won a number of international awards for the best platform that is flaunted on its website.
When you compare it to other low-cost platforms such as IBKR its cost can be significantly more, even more if you are looking to frequently trade with the high trading costs. It can add up and these are better platforms for this.
As an advisor platform for expats, if you are looking to hold funds it is a good option due to the location and low cost. Yes, it’s not as cheap as Vanguard or Fidelity. But, the 0.4% flat fee is not bad also with no exit penalties.
I see it as an adequate platform for expats. I personally have an account with Ardan, to try it out and find the trading into funds the only aspect that is high for me.
Conclusion
Please remember, all of this is my opinion and not financial advice. These are also advisor led platforms that require you to have an advisor in order to access them. If you are after a DIY platform, I will release a blog later on with my thoughts and opinions about what is out there for you.
I favour Novia because of the overall technology, application and analytics you have access to. As I have mentioned before, it might not be the cheapest platform, but for me personally, it offers a good range and is worth the extra cost in application times and user experience.
Praemium is close behind, however, the fund selection is a little behind Novia and that is why it’s second. For those seasoned investors who want that little extra detail, that is where the price is. If you are just looking for some funds to invest money in to and want to save it up, then Praemium will do a very good job and the price is very well placed for the market.
Ardan, is a platform I have spoken about before. I think its user experience and design is good. I would make sure that you know how to make the most of Ardan as it can add up with trading costs, such as any platform. It is still a very good option for expats who would like an advisor and even better if they want to hold low-cost funds as this platform does offer some good services to expats.
- Lump-Sum Platform Review For Expats: Part One
- Lump-Sum Platform Review For Expats: Part Two
- UK Expat Investment Platforms
If you have any questions or want to know more about a platform, please email me at info@investmentsforexpats.com
