Novia, the Bath firm providing wealth management platforms for investment advisers and their clients, has achieved an increase in its financial strength rating from independent actuarial company AKG.
The rating, which has risen from B-minus to B, depicts a ‘strong’ financial position according to AKG – a rare achievement for an independent business which launched less than three years ago. Over that period Novia has grown rapidly and is now a major employer in Bath.
Its profile in the city has also risen since it became Bath Rugby’s main partner last June in a two-year deal that gives it branding on players’ shirts. The Rec’s East Stand is now been renamed the Novia Stand.
Financial strength ratings from AKG, an actuarial-based consultancy specialising in information and market assistance for financial advisers, are well recognised in the market. The rating includes analysis on operational appraisals, financial appraisals including margins and customer focus, as well as strategic appraisals and an analysis of the group and other relevant activities such as services, processes and distribution.
As well as a ‘strong’ rating for financial strength, Novia also received an impressive four out of a possible five stars in the supporting ratings category, which take in service, image and strategy, and an annual review with the report concluding: “Given its youth, Novia has been able to design its business with TCF (treating customers fairly) as part of the framework”.
Novia chief executive Bill Vasilieff said: “This is a significant result for the business as financial strength remains a key consideration for advisers when selecting a platform for their clients.
“Interestingly, it is not necessarily the big firms with the large AUM (assets under management) figures that have come out with the best strength rating or who have been protected from the market turbulence in recent years. It has been the larger firms who we have seen pull out of the market, with the smaller, more agile platforms, able to quickly adapt to the changing market conditions and the new adviser landscape in the shape of the RDR, who have continued to grow and flourish in the market.”
Despite the turbulent market conditions of the past year Novia had continued to grow at a rapid pace, achieving record inflows for 2010 and reaching profitability, said Mr Vasilieff.
Novia also successfully set up an outsourcing business, Novia Investment Services, which launched its first client on time and on budget, and is described in the AKG report as a “significant vote of confidence” for Novia.
“Our growth in the market is largely down to our sound business model, focusing on providing our supporting adviser firms a first class technology solution, and an award winning service capability,” said Mr Vasilieff.
