04 July 2023
By Maynard Paton
I have recorded another podcast with fellow investor and good friend Roland Head. This time we talked about IntegraFin, the FTSE 250 investment platform that offers many attractive qualities for long-term shareholders.
We discussed the recurring nature of the group’s revenue, the focus on serving financial advisers, the appealing-but-complicated financials and how the business compares to retail-investor platforms Hargreaves Lansdown and AJ Bell:
We cover:
- Introducing our new premium podcast service >>
- IntegraFin’s Transact platform, serving financial advisers and recurring revenue.
- Consistent new client money, growth history and watch-list position.
- Differences and comparisons between IntegraFin, Hargreaves Lansdown and AJ Bell.
- Client numbers, fees and passing on interest to clients.
- ‘Responsible pricing’ and inspiration for Hargreaves Lansdown.
- Clients, advisers, clients per adviser and client money per adviser.
- Movements in client money, client returns and client withdrawals.
- Handling onshore and offshore bonds with convoluted tax advantages.
- Alternative UK financial-adviser platforms and market shares.
- Blackrock’s model portfolio service, discretionary fund managers and layers of fees.
- Client money on the balance sheet, cash generation and superb ratios.
- The insurance subsidiaries and their accounting.
- Co-founder Mike Howard, ‘thin-cat’ pay, other executives and no LTIP!
- The lack of CFO, reporting errors and awkward auditor text.
- Higher costs, the Transact website and past underinvestment?
- Capturing new advisers, migrating clients to the platform and growth beyond Transact.
- The earnings multiple, dividend income, payout policy and intriguing valuation.
- Further thoughts on Hargreaves Lansdown and AJ Bell.
- Shareholder risks, market downturns, regulation changes and what price to buy?
Extra links:
- IntegraFin website.
- Transact website.
- My IntegraFin article for SharePad.
- Roland Head’s dividend website.
Happy listening!
Maynard Paton
PS: The episode was recorded on 26 June 2023.
