Allfunds Group plc (ALLFG) Earnings Call Transcript & Summary

Good morning to everyone. Thank you for joining us today in this Q1 2022 trading update. As you may have seen in the statement, we have published this day morning. Today, we also announced the acquisition of instiHub, a company with unique data insight solutions for the asset management industry. This is the second acquisition we executed following the announcement of World Financial Group earlier this month. I'm very excited about these 2 acquisitions and the opportunities and value add that they will bring to our clients and our marketplace. We publish a brief document of Wood Financial Group in particular and that we will discuss later on this call. But let me first walk you through the highlights of this quarter. First of all, year-on-year assets and administration were up 10.3% since March 2021 for Allfunds Group and almost 13% for Platform Services, excluding our billing and execution activity. This growth was driven as a result of the strong organic net flows and positive market performance especially during 2021. In Q1 2022, given the strong volatility experienced in global markets due to the worsening geopolitical events and volatility concerns, we saw assets decreasing at 6% to EUR 1,405 billion. Assets related to Platform services, which as I reminded, drives the vast majority of our revenues declined by only 5.5%, penetrating a greater resilience as a result of new client migration onboarding to our platform. This comparison is a decrease of 6.4% for the European funds industry, according to [indiscernible]. So we continue to outgrow the market, even in times like this. So in summary, negative market performance across almost all asset-classes that expect fixed income as well as equities contributed to mutually all of the decline, while net flows from existing and new plants were basically flat. This was a result of [ model's ] existing client outflows of about minus 1% during the quarter, which were being compensated by new client migrations. The existing client outflows were concentrated on the month of March as a result of the escalating prices in Ukraine. We have since then in a stabilization of this time during April as markets have settled and stabilize a little bit. Let me reassure you that this is very much consistent with what we had experienced in many predestine of market and geopolitical turmoil. During terms of uncertainty and market declines we tend to see clients temporarily shift from invested assets into cash, and therefore, part of the assets leaving our platform. These assets then return on to our platform once market is stabilized and return to growth in addition and to the ongoing recurring flow of new investments. So what we are used to seeing in this period of turmoil is some modest outflows followed by accelerated net interest in the recovery phase. And we would ultimately expect these things to happen when things settle and grow against [ this time ]. I would also like to reiterate today that we remain highly confident in the attractive prospects of our business and the growth levers at our disposal. We have continued to see strong new client activity, demonstrating our ability to continue to win market share. During the quarter, we onboarded about EUR 10 billion of assets from new clients onto the platform, and we signed 18 new distributors, 1/3 of them coming from direct competitors. Our new client pipeline remains very strong. And while it is this year more weighted to the second half of the year, we would expect to see similar new client flows at last year's record year. So our secular group drivers remain absolutely intact. First, outsources; second, new-to-open architecture; and third, unitization. On top, we continue to win market share and expand regionally. In terms of M&A, we are progressing with our strategy as seen with Web Financial Group last month and today with the additional announcement of our acquisition of instiHub. With Web Financial Group in the bag, we have acquired a highly complementary and strategic business to prove our customer value proposition and enrich our service offering to our clients. What makes me particularly excited is that this business has been founded and run by entrepreneurs, who now decided to execute the vision within Allfunds, as a partner that can help them to open massive opportunities with our unique base of more than 2,000 partners, including both distributors and fund houses. This is a compelling and very seriated proposition for these founders and revenues. So now let me move the acquisition of Web Financial Group. So now we are going to share with you the presentation and the document that we that we attach. So for the presentation, I'm going to ask Alvaro Perera our CFO, to cover the different slides Okay. So Alvaro...

Thank you, Juan, and good morning, everyone. It is a pleasure to walk you through the main highlights of the Web Financial Group transaction. And as you have heard from Juan, we are very excited with this opportunity, given the strategic complementarity that broadens the Allfunds Connect value proposition. Web Financial Group enhances Allfunds capabilities as a key strategic partner for our clients' digital ecosystem for the following reasons. First, it reinforces Allfunds Connect with new functionalities, multi-asset solutions, multi-data capabilities, and front-end capabilities. Secondly, the cross-selling opportunities across both our client bases with a strong regional and client base overlap, as you can see on Page 4 of the presentation that we uploaded. And finally, with this acquisition, we boost the Allfunds talent with an international tech team of around 75 software developer engineers and a team of around 20 sales specialists. I would also like to highlight the attractive financial profile and the fact that we expect this acquisition to be EPS accretive. On Page 6 of the presentation that was uploaded, we have included a side-by-side view of the full year '21 pro forma financials for both Allfunds and Web Financial Group. The total consideration is EUR 145 million, implying a 6.5x EV/revenue multiple for 2021 and a 23.8x EV/EBITDA, excluding synergies. With this acquisition, we integrate the business with a recurring revenue model, which is growing at double digits. It also doubles open subscription revenue to approximately EUR 42 million, which represents roughly 8% of 2021 pro forma total net revenues. The combined adjusted EBITDA margin remains above 70%. And finally, it is expected to add 2% to 4% EPS accretion in Year 1 and have a neutral impact on Allfunds' Banking Group solvency position. Juan, do you want to take -- to talk a little bit about the enhanced value proposition?

Thank you, Alvaro. I think you have already covered the most important points. As you said, it clearly reinforces Connect with new functionalities, especially multi-asset solutions, multi-data capabilities, and front-end capabilities. It's a clear opportunity to cross-sell Allfunds' platform solutions and Allfunds' existing digital solutions to existing Web Financial Group clients and Web Financial Group mobiles to exist in Allfunds clients. So a clear win-win. And as you mentioned, I think this is all about attracting talent. I think this new strategy for open connect of attracting founders, CEOs that want to partner with Allfunds is our new growth driver. And as you said, the international team close to 100 people, 75 software developers, engineers, and around 15 people of sales senior people around the world that will definitely help us not to boost our digital services. So yes, those for me are the key takeaway of this deal. Okay. So finally, I would like to spend the last minute of the call on the acquisition of instiHub that we have just announced this morning. If [indiscernible] small, but [indiscernible] providing bespoke data solutions on the fund industry. This transaction is again another perfect fit to complement Allfunds' existing data and analytics products and will boost our proprietary testing pass data tool telemetrics. Price will not be disclosed as agreed with the relevant parties, but the entity which they have will contribute to revenues since Fay 1 and is currently not loss-making. We welcome Andreas, CEO and Founder, and his fantastic team to the company. And thank you very much, and I think that now we can open Q&A. Thank you.

[Operator Instructions] Our first question today comes from Philip Middleton from Bank of America.

I wondered, could you talk a little bit about the new client acquisitions you've made over the quarter. What geographies are those coming from? Because you've tended to be quite strong in growing in, say, Asia and offshore LatAm recently? Have you seen that continue? And also, what progress have you made on the upselling into the BNP execution-only book?

Yes, very quick. I mean, in this case, in Q1, I mean, we have seen clients coming from all around the world. I cannot really mention one specific area, which I think it's very positive, and it's kind of our key goals which growing in many different ties and not just in our core country. So very, very diversified new distributors joining the platform. And regarding the BNP conversion, I believe that's the question. It's on track. I mean it's on track, remember that we said that we were going to come in and to finish, let's call it, the first phase of plan conversion in Q1 of that year and is on track. So nothing relevant fully to comment on that.

Okay. So is any of that in your new client AuA for the quarter.

Clients, you mean if we are including in the 18 and new clients in.

Yes, that's right. Yes.

No, no, no. Now before -- I mean, we never take into consideration the client conversions, okay. So it's partners - no distributors.

The next question today comes from Alex Medhurst from Barclays.

I have 3, if that's okay. The first one, can you just help us how to think about revenue margins in the first half of this year, in particular, that transaction element given on the one hand, we've got higher volatility. But on the other hand, we've got lower flows and weaker sentiment. So just any help on the revenue margin picture would be useful. And secondly, it's useful to hear your views on the sort of shape of how flows from existing clients trends in these weaker conditions and then come back when conditions stabilize. Can you give us any sort of clues as to when you'd expect that sort of slow to return? What conditions would we need to see for that to come back? And then third, just on the Web Financial Group acquisition. Is there any color on the shape of how the financials will develop over time. Are we expecting a linear benefit to earnings? Or will it require any sort of investment in the early periods before sort of hockey stick further out.

Juan, do you want to let me take that one.

So yes, sure.

So starting with your first question. The poor margin for Q1 is we expect it to be in line with the latest guidance we provided. So on track on that front. Regarding the second question on the flows. Really, it's difficult to assess what's going to happen in this market environment, as you know, and you'll probably have your own view. It's what we've seen in the past is that the negative client flows that we're seeing right now are in line with the expectations that in a period of market turmoil and client uncertainty. As Juan said, we've seen a stabilization in the last few weeks. And in any case, once the markets stabilize, we typically see these assets returning to the platform. As cash is moved into investments. And there is a catch-up from saving effect and structural tailwinds to us open architecture. That is what happened in the past. And in any case, during turmoil, we would also expect that we can generally compensate or more than compensate negative existing client outflows through new client migrations. And that is what has happened in Q1. And as we move into the second half of the year, we expect to see an acceleration of those migrations, which would help in any case, in case the market environment does not improve, and we continue seeing some existing client outflows. And finally, on the Web Financial Group question, we do expect very limited investments, given it is a highly complementary business. It's a business with a strong track record, and we expect linear development in terms of growth and economics, yes, definitely. I don't know, Juan, if there's anything you want to add or if I answer, if anything remained unanswered, happy to.

I think we have some, I mean, track rate growth recovery in organic flows. Last time we saw a big drop was in March 2020. all come from COVID and that was March. In April, we already started to see positive organic flows. So it was less about the amount. It looks like in this case, it's not going to be unfortunately, it's such a short period of outflows because, unfortunately, we return on the TV and you keep on seeing this terrible images and news coming from Ukraine and the world. And as long as this is still there, unfortunately, this uncertainty will remain in our investor client base. And 2 things can happen. One is that they remain invested, so they do not redeem. So this is what's happening. That is pretty positive or they decide to cover the in, but it's going to really depend on what we see. Unfortunately very related to the war.

The next question today comes from Arnaud Giblat from BNP Paribas.

I've got 2 quick questions, please. Firstly, at the IPO, you indicated that Connect revenues will grow from 5% to 10% over the medium term, roughly adding 1% per annum. I'm just wondering with the acquisition of Web Financial Group and the beefing up of your development capabilities, your sales capabilities, whether that organic pace can accelerate from here? And what sort of new products you might envisage with the added, I suppose, capability. My second question is on further M&A. I mean, clearly, it's good to see that development there. I'm just wondering if there are many opportunities out there to do further bolt-ons to help accelerate the growth in data and other services inorganically?

Yes, very good questions. Well, regarding the first one, we continue with entering the guidance now that we gave you during the IPO almost 10% in the midterm around 3 years. I mean, definitely, thanks to this acquisition, we are already in 8%, okay? And it's clear that it's going to accelerate also not just through inorganic and acquisitions, but also, as you said, this is going to boost also our organic subscription growth, okay, because it improves the current value proposition now that we have now. However, I think the message here is that we will definitely try to and if we pay that 10%, okay? But we are still in that 10% goal, okay, midterm. Not going to change it for the moment, okay? So this is regarding what Financial Group and regarding if we see more bolt-on acquisitions, some opportunities, the answer is definitely yes. I think what we have been saying since IPO -- previous years were all a game of acquiring assets, okay? So it was platform deals, acquiring assets, and penetrating in new countries for us, what we did in Switzerland, in Sweden, in France. But we also said that once we had enough scale, it was all -- I mean all our focus, all our resources were going to concentrate on enhancing our value proposition. We have an unbelievable and unique opportunity of more than 2,000 partners with fund houses and distributors and what we need to do is to serve them and to provide them with the best possible tools and products. And for that, well, I think the best strategy, in my opinion, okay, apart from trying to do everything in-house and with my current team is to try to convince founders of companies of Fin Techs, CEOs to join our group. And this is the strategy. And I think there are several more opportunities there. In fact, there are many more opportunities than when we talk about a other fund platform. That's pretty -- the opportunity in other platforms is pretty the opportunity with bolt-on acquisitions is much more proven.

If I can just -- that's helpful, please. If you can just follow up -- could you just maybe indicate what sort of cash and debt capacity you have on balance sheet to do further deals?

Okay. Alvaro, do you want to cover that part?

Sure. So on balance sheet, Arnaud, we have around EUR 300 million. Of course, we do have other financing sources as you know well. For the Web Financial Group acquisition, we have drawn entirely on the revolver, the EUR 145 million. So there is still excess financing capacity on the revolver plus whatever additional we might want to extend. Yes.

The next question today comes from Tom Mills of Jefferies.

3 questions, please. Firstly, you kind of indicated that the outflows in the first quarter were skewed towards fixed income. Could you give us an idea, were those fixed income outflows biased towards a certain set of fixed income strategies or was that quite broad based? And do you have a sense as to whether the drawdown in fixed income markets year-to-date could have a more prolonged impact on kind of fixed income flows? Secondly, with respect to the pipeline for migrations, I think you commented, Juan on there could be a similar level to last year, which sounds encouraging. Perhaps just similar to Philip's question earlier, could you give us an idea of perhaps where that pipeline is coming from if you're able to? And would you anticipate kind of similar proportion coming from competitors as you've kind of indicated for the first quarter, i.e., about 1/3? And then just finally just on the kind of acquisition side again. I thought it was encouraging that the WebFG deal was neutral for the bank solvency side of things. To what extent -- could that be a constraint to doing kind of further bolt-on deals in the kind of very short term? Or could you envisage doing kind of similar size deals to WebFG this year?

Okay. So interesting questions. Let me cover the second question. So regarding migrations, and I will ask Alvaro to cover the other 2. So regarding migrations pipeline, the pipeline is about EUR 100 billion, okay? Having said this, afterwards now what we have to do is to be able not to migrate those assets during the year. So that's why -- well, one thing is the pipeline and different things, the assets that we are able to migrate and that we will be able to migrate this year in 2022. But yes, I think the number is going to be very similar to last year and coming mainly from Europe, okay. So yes, I mean, we are acquiring clients from America, from Middle East, from Asia, but the largest migrations, I can anticipate you that will come for you. And with this probably, Alvaro, you can cover the other 2 questions...

Sure. Yes. So Tom, so on the fixed income outflows, we haven't seen any specific asset-class, say, outweighing the rest. It has been rather across the board. And with regards to the second question on the acquisition and potential impact on capital, you're right. The operating or the acquiring entity, in this case, has been Allfunds Digital, which is under the regulatory perimeter. But the good thing is we do have a buffer, which also gets replenished, let's say, over time. And let's not forget that we do have plc as of the listed entity, which is outside of the regulatory perimeter, and that gives us much more flexibility in terms of how we can structure future potential transactions in a way that are accretive and capital, say, neutral...

The next question today comes from Andrew Coombs from Citi.

I just want to come back to the topic of the net new money flows, migrations. And just think about it in terms of cyclical versus structural. So first, if we think about cyclical, you talked about the experience during sans pandemic. We don't have the quarterly figures back then. But if I look at the half year figures, you are still in inflow territory. If I look at first half 2020, I think your net new money run rate is still around 4%. Likewise, in the 2018 downturn, you were still up 4%. So this is the first one I can see that you moved negative. So is there any reason why you think this episode has been more pronounced than what you've seen in the past? So that would be the first question. Second question on structural growth. At the time of your IPO, you talked a lot about the shift to open architecture and then to third-party outsourcing. There's very little evidence of that structural growth in today's numbers. So I just wanted to get a feel for whether you think the -- some of the distributors who are keeping this business in-house or delaying these decisions in light of recent volatility.

Okay. I'm going to cover the last question, okay. And I will ask Alvaro cover all these kind of historic data. Okay? So well, I think that there is a clear tailwind. And I'm not really seeing that that is changing because of all these geopolitical concern and volatility in the market. In fact, I believe that it's exactly the opposite, note. So I think that in the middle of all, in any crisis that we have experienced in the history of our funds more than 22 years now history when there's market volatility when things are -- I mean, get tougher and more difficult, I think there is a clear -- there is a clear increase in the appetite for outsourcing. And this is the key work in our business, which is outsourcing. So distributors banks outsourcing their access now to open architecture to platforms like Allfunds. So that's my first reaction to your question. An open architecture -- like I mean a business -- like the reality, this a cope very difficult that any crisis or volatility can make, I don't know a bank that was selling best-of-breed products or the products of the best asset management companies in the world to take the decision to suddenly decide to tell their best clients to, "guys, but now you can just by our proprietary approach because I don't know because there is a lot of volatility in the market and whatever." So no, I think the 2 most important drivers, secular drivers of Allfunds growth, open architecture as a trend, a capable trend and outsourcing other are here to stay and to remain and it's clearly helping Allfunds strategy of keep on growing. And probably Alvaro you can help us now with some historical data.

Sure. Look, we acknowledge that this is an unprecedented time, and especially in Europe, we are extremely mindful of the impact on the capital markets that these uncertainties create. In the past, we have already experienced market cycles, and you mentioned 2020, but we've seen it in previous years as well. And the business has shown strong resilience. In 2020, just to give you an example, we saw one very, say, bad month in terms of market performance with also negative flows during that period and that organic flows picking up again in a matter of a few weeks and months. We also have another example where this market volatility state for a longer period, in particular, I'm talking about Q4 of 2018. And in this case, we did indeed see a steady market slowdown throughout a period of 3 to 4 months and a sharp decline in AuA coming from market performance. But we saw then the market coming back at the same path. And when we looked at how flows behave, we did see some negative or some outflows during a longer, more prolonged period of time than what we saw in 2020. But then afterwards, flows came back to the platform. And in fact, we experienced very strong organic inflows. So ultimately, it will depend on the duration of this volatility situation, but we are confident that in the medium and long run, once everything stabilizes, we should expect our business to continue gathering inflows from existing and of course, new clients.

The next question today comes from Angeliki Bairaktari from Autonomous Research.

First of all, can you give us a little bit of color on the assets from existing clients that you saw in Q1? Were those driven by any particular network? I'm in particular, interested in the performance of the networks where you have exclusive agreements like Santander, Intesa, BNP, and Credit Suisse? And also were they driven by any particular geography? And secondly, on the capital impact for WebFG, I would imagine that most of the EUR 145 million price that you're paying is going to be goodwill and intangibles, which would be on the banking group entity, it would be around 700 to 800 basis points of capital. So can you give us a little bit more color on how the neutral impact comes about in your estimates? Because in my estimates, it would take quite a few retained earnings to replenish that hit. Thank you very much.

Okay. Thank you very much -- very good questions. Let me cover the first one, and I will let Alvaro to cover the latest one. So okay. So this redemption, we have some concentration in 2 countries, okay, Spain and Italy. It's true on the redemption side but not in any particular distribution network. I think you mentioned Santander and probably, Intesa. No, I think it's something that we see in more than 14 clients that we have in Spain, some redemptions coming from the Spanish market, again, not coming from a specific network and the same in Italy. And regarding what Financial Group... Alvaro…

Yes. Let me take that one. The reason why -- and you're correct, the EUR 145 million purchase price will have probably a substantial portion of goodwill. We'll need to wait until we have the purchase price allocation then to see how much. But you're correct in your assumption, that's correct. The reason why this is capital neutral and there is no -- the deduction that you would be expecting is that we are pushing the funds that we're drawing on the revolver from a plc level down in the form of a capital increase shareholder funds. So by doing that, we compensate the negative deduction due to goodwill and intangibles with an increased capital.

That's very clear. So in terms of M&A capacity going forward, you could theoretically then issue debt out of the plc and push it down in the form of capital increase in the banking entity as well?

That is correct. That would be one of the alternatives, correct.

The next question today comes from Antonin Baudry from HSBC.

In fact, I would want to come back on platform margin. You told that you were in line with the last guidance. But again, would it be possible to have more flavor about the impact of current environment on your platform margins? Would you be more comfortable with the low end of the range you target or the high end you target in H1 take into account volatility of the market? The second question is would it possible to have an update on your initiatives on crypto currencies.

Juan, should I take the first one and let you the second one.

You need to clarify because I didn't, unfortunately, didn't get the question. So -- but let's cover the first one.

But Antonin, this is Silvia here. Can you please clarify because we don't have cryptos.

Sorry, blockchain initiatives, sorry.

Understood...

Okay. Perfect. Okay. So as you want to...

Sure. Yes. So back to your question on the platform margin, I referred to range. I can try to be a bit more specific, let's say, probably more towards the mid or perhaps high end of the range. And the reason is, even if we've seen some AuA decline versus the end of the year. Reality is, as you know, is that transactional income tends to be stronger during periods of volatility. So in this quarter, we can say that we have had a good performance from transactional income, which is contributing positively to the platform margin.

Regarding Blockchain, well, performing this trial the technology -- proprietary technology that we developed in Allfunds blockchain subsidiary. It works. In fact, you know that a couple of months ago, we launched the first tokenized plant in Spain, okay, in a sandbox that was linked by the Spanish regulator, CNMV because it was a complete success. And now we are working in 2 very specific projects Allfunds in Spain and in Italy in order to use blockchain technology in all the transfers and spans transport. Today, it takes weeks, and we are going to reduce all this time in second with, I mean bringing a huge efficiency to the industry. Apart from this initiative, we have the team really involved in conversations with EAs, with fund houses and distributors in order to try to implement our new and unique technology. So it's very, very exciting. Very exciting.

The final question today comes from Reg Watson of ING.

I'd like to start with the new distributors that you've brought on board, please. Of the 18, you mentioned the first 1/3 have come from competitors. I'm guessing that 1/3 by number and 6 of them, please, could you break down the actual net new money that has come from the new distributors in terms of proportion. So rather than being 6-6-6, what actual euro value have the different categories accounted for in the net new money. That's the first question relating to that. And the second question is which competitors have you recruited some of your new distributors from? And then once we've covered that, I'd like to move on to the BNP party, third-party book as well.

You want to touch -- because I don't know what -- Alvaro, please go ahead.

So I got your first question, but not sure I got your second question clearly. Do you mind?

Yes. So the second question is simply of the... Distributors that you pulled... Which competitors do they come from?

Okay.

Well... I can answer the one on the competitors because unfortunately, the answer is that we are not going to give that information, apologies for that. Of course, we have it, but we prefer not to really talk about...

Okay. Okay. I understand that there may be reasons but it would be helpful to understand why I would have thought you'd be trumpeting the success and making a point of who you're winning against?

Yes. Well, nothing has really changed. I mean, I think we still have a unique value proposition, which is not comparable to any other competitor. And therefore you know. I think the trend of gaining market, gaining in the trends, and not just in clients that you saw last year, we presented the 2021 numbers with more than 85 new clients without having lost a single client. Well, I understand and I also realize that probably in the future, we were not able to maintain these statistics model of gaining so many clients and never losing clients, but it looks like nothing has really changed, at least in Q1. So we are still gaining market share in every country where we operate and convincing clients that are working with other platforms to do the that's something that for the moment, it remains intact. Okay. And regarding Alvaro, I don't know -- well, of course, we have the info organizing... Those... I think clients...

Yes. In terms of volume, those migrations that we've seen in Q1, you can say that 2/3, so around 65% of the volume is coming from competitors.

Okay.

It's 1/3.

Yes, there's 1/3 by number, so 6 distributed by number, but it's 2/3 by value...

Okay. And then, Juan, I'd just like to perhaps circle back on this issue of who you're winning business from. I appreciate you don't want to give the name and I'm not going to change your mind now, but could you give us more color then, please, on who the strong competitors are for you and who the weak competitors are? Just trying to build a picture up of who you're bringing business from and why. So anything, you can give us to help us with that...

But it does not really change anything. I mean in the past, there were 4 competitors, global competitors, you're clear and settle. In fact, Deutsche Börse with Clearstream and UBS from center and now there are just 2. Because I mean, as [indiscernible], and Deutsche Börse has bought the Swedes', has bought UBS from center. So now they are just 2 global competitors. So yes, so that's all I can really say.

Yes.

And regarding the vision, I think you already covered that part.

Okay. No, that's fair enough. So you only see the global competitors as your competitors, there's no local competitors who perhaps we haven't heard of it then you're taking... Okay.

No. No, I'm not saying with this, that there are some local small champions that we might see some deals against them, but I feel that competition is not definitely in the local champions or local platforms. The competition, past competition -- present competition and respectively, in future competition is going to be with this with these big platforms that, of course, they are doing their homework. And as you can see, if you follow them, they are in some way trying to replicate our business model, which I'm very happy that they do because that shows that we were right.

No, that's fair. Thanks for that. And then I kind of gave you a heads up, but I was going to circle back on the BNP-party distributors. You mentioned earlier that everything is on track, but you've been quite coy about giving us the details of that track. Could you give us some more information, please, on the quantity of AuA and perhaps some color on what is -- what you're finding easier about the conversion of that client base? And what is proving more difficult with the conversion of that client base?

I think that's something we can... Do you want to... I was going to say we were planning to be a bit more specific in the second half. When we publish sorry, first half of results presentation, yes.

Right. Okay. So there'll be more...

We will commit with -- I mean I remember last year, we were not able to give a lot of detail about this client conversion. And probably we get too much when we publish the 2021 results. And now what I can say is that I think makes to me, makes no sense to -- I mean, to keep on updating every quarter giving specific numbers. What I can tell you is that what we said and the assets that we committed that we were going to convert are the ones that we are going to convert. And I understand it can be that the plan is completely on track, okay, and is working as expected. Different things, whether you think that it's good or not, because for us, it was -- the numbers were very good, examples that we presented, listening to the feedback mode that you gave as the best stores and the community gave us was that they were expecting more. Again, we will commit with the numbers that we disclosed on the 24 [indiscernible]. And as Alvaro said, in first half, okay, we will give you much more detail, okay?

Okay. Thank you. And I think I was the last on the call and we've still got a few more minutes. If I may take the liberty of just during the conversation somewhere else. Sub advisory. I don't think we've heard much on that of late, and I'm just wondering how -- what sort of progress you're making there and how that's measuring up against your original expectations.

Sadly, my investor relations. She told me that it was a 30 minutes, 1/2-hour call. So when you say the...

Sorry. Okay. So well over time...

Well, I think we have a very good news from [indiscernible], in my opinion, coming from this specific week that finally, we got the license and the approval from the okay. So the Luxembourg regulator for our ManCo. You know that we were expecting to receive it in Q4 of last year. And unfortunately, what these things sometimes are difficult to control all these regulatory approvals. But we finally got it on Monday, okay? So now we have the ManCo. So we already have the team, and now we are going to be able to land all the products and services that we want to provide out from Allsolutions, which as you know are not cash a mandate, but we also want to enter into the fun hosting business of, for instance, and some other initiatives. So now we now we have the company ready to ready for that. I will be able to give you some more color and data about how the business performs for sure in H1, okay with you?

Okay. Fantastic. Okay. It looks like we're going to have to be patient I'm sorry for pushing the over even further than...

Right. Okay.

Thank you. That concludes today's question-and-answer session. I would now like to pass the conference back over to Juan Alcaraz for closing remarks. Please go ahead.

Thank you very much. Well, my only comment is that, again, thank you, thank you very much for attending this call and for your interest in Allfunds and for your support. Thank you very much. Have a nice day.