- The company enjoyed strong international growth in 2023, winning new clients in Europe, the Middle East, Japan, and the U.S., who collectively have over £100 billion in assets
- Recent client wins in the UK mean around a further 1,600 advisers will migrate on to the Oxford Risk platform over the next three months, representing some £75 billion of investable assets
- Expansion will allow it to invest further in the development of new IP with a particular focus on behavioural interventions driving growth for clients from faster AUM growth
Oxford Risk, the behavioural finance experts, have announced the value of assets managed through its platform increased by 20% in 2023, rising from around £1000 billion to £1200 billion.
The company, which builds software to help wealth managers, pension funds, and other financial services companies assist their clients in making the best financial decisions in the face of complexity, uncertainty, and behavioural biases, has developed proprietary assessments and algorithms which rank products, communications, and interventions for investors at a particular time.
Oxford Risk believes the best solution for each investor needs to be anchored on a holistic view combining stable and accurate measures of risk tolerance, an understanding of their overall financial circumstances, and knowledge and experience.
Behavioural assessments of financial personality then add the opportunity for investors to learn about their own attitudes, emotions, and biases, helping them prepare for any potential anxiety that is likely to arise. This allows our clients to help investors achieve better financial outcomes through more suitable portfolios and more impactful guidance throughout. This in turn drives strong asset and revenue growth for clients
Around 75% of the assets partly managed through Oxford Risk’s platform are from UK-based wealth managers, but the company enjoyed strong international growth in 2023, winning new clients in Europe, the Middle East, Japan, and the U.S. who collectively have over £100 billion in assets.
Recent client wins in the UK mean around a further 1,600 advisers will migrate on to the Oxford Risk platform over the next three months, representing some £75 billion of investable assets.
James Pereira-Stubbs, Chief Client Officer, Oxford Risk said: “Consumer Duty requirements in the UK to ensure good outcomes for investors and the focus on behavioural biases that may be impeding investors from reaching their full potential have been powerful adoption drivers for clients looking to upgrade their investment suitability assessments for a more holistic investor understanding.
“Internationally, demand for our proposition has been driven by different factors within each region. For the European MiFID II zone, the major driver is the regulator’s dissatisfaction with the current ‘check the box’ investor assessments that place the burden largely on the investor to self-identify their risk appetite and needs, and overall existing inaccurate systems for assessing clients.
“In countries with less regulatory pressure, our clients are looking for better matches between investors and their portfolios to grow assets faster, and to have greater investor engagement.”
As a research-led organisation, the growth of the company will allow it to invest further in the development of new IP in the areas its clients and prospects are demanding. This includes:
- Incorporation of guaranteed income in investor suitability assessments
- Further build-out of behavioural interventions to help investors make better decisions and drive strong organic growth for clients
- Continued build-out of its ESG and Portfolio mapping
James Pereira-Stubbs added: “Our business model is to use the funding from large international clients to continuously drive innovation in our standard offerings that all our clients, regardless of size and location, can benefit from.”
