Portfolio analysis tools help intermediaries to track portfolio performance and analyse the cost and risk of their investments – crucial services at a time when there is more focus than ever before on charges and performance.

The survey, conducted in December last year, found the main reasons for the increasing take-up of external data-driven platforms are their ability to offer a "one stop" overview of client portfolios (52 per cent), more access to data (34 per cent) and more detail on funds (30 per cent).

Advisors reported that IRIS and 360 Financial were the two most popular third-party portfolio analysis tools, followed by Plum and True Potential. Following these were True Potential, SEI, Multifunds and Cornerstone, the survey showed.

The report said the Retail Distribution Review reforms of financial advice in the UK, which came into law in 2013, have had a “positive impact” on the UK retail financial services industry with three in five (61 per cent) of intermediary businesses suggesting they have grown since its introduction, of which 13 per cent reported significant expansion.  

The RDR outlawed trail commission and pushed to raise professional qualifications among advisors. It remains a controversial move, however, with some industry figures arguing that it has created an “advice gap” as firms have increased investment minimums for clients as regulatory cost burdens have made some client business uneconomic.