Timeline

Client Background

Timeline is a financial technology business and United Kingdom (UK)-based discretionary fund manager (DFM). The company was founded in 2014 when it launched its first investment portfolios, followed by the launch of its discretionary fund management business in 2020.

Timeline’s discretionary fund management business deploys innovative technology to offer a low-cost, evidence-based discretionary model portfolio service (MPS) built exclusively to meet the requirements of financial planning firms and their retail clients.

It is currently one of the fastest-growing DFM businesses in the UK, having grown its discretionary assets under management to over £10 billion (bn) [i].

The Opportunity

To help further accelerate growth and ensure continued close alignment of its products with the investment needs of the adviser community and its clients, Timeline’s management team saw an opportunity in the UK retail marketplace to develop a unitised fund version of their existing MPS offering. This would solve several needs for their advisory client base.

The proposition would target the estimated £150bn[ii] of multi-asset portfolios held across UK-advised platforms and capitalize on the growing popularity of multi-asset strategies. To execute their plans for the new range of funds, Timeline sought an investment and servicing solution that would seek to match both its requirements and those of its clients:

• A more tax efficient solution. Launching a unitised fund version of their MPS to help alleviate the ever-increasing Capital Gains Tax liabilities that clients bear on assets held within General Investment Accounts (GIAs) and outside of tax-efficient wrappers such as Individual Savings Accounts (ISAs).
• A UK-domiciled, non-UCITS unitized fund solution. Creating a UK domiciled fund to provide opportunity to seek relief on US Dividend Withholding Tax by wrapping fund structures which are more UK investor friendly, such as Northern Trust Asset Management (NTAM)’s Common Contractual Fund, and provide a circa 16 basis point uplift on US dividend withholding tax.
• Reporting efficiency. Creating a non-UCITS Retail Scheme (NURS) to negate the requirement for advisers to report on excess reportable income, helping free-up time for advisers to focus on their clients.
• Delivery at a competitive price point attractive to Timeline’s target market segment of primarily UK retail investors, helping ensure competitiveness against existing multi-asset fund providers in the UK market.

Timeline’s management team first evaluated the option of developing its new fund solely using in-house capabilities in conjunction with an external Authorized Corporate Director (ACD). However, they decided against this option primarily due to the significant set-up costs, time, and additional resource that it would likely involve.

The Solution

Having decided against the option of constructing its new fund range using its in-house capabilities, Timeline’s management team began conversations with asset managers they were currently working with to explore their appetite and capabilities to support it.

They sought engagement on ideas for how the funds, to be hosted on over 20 UK advised retail platforms, including Timeline’s own, could be constructed, managed, and serviced. Timeline sought to work with providers who were not only able to support their operational and investment requirements but move quickly, collaborate intensively, and help them capitalize on what they evaluated to be a significant market opportunity.

As part of these discussions, they approached NTAM, with whom they had worked since 2021 on a mandate for managing pooled investments.

NTAM collaborated with colleagues in Northern Trust’s asset servicing business to first evaluate Timeline’s requirements and draw up suitable options. Both Northern Trust businesses then collectively proposed an investment and operational structure to Timeline for a range of UK NURS funds for the new multi-asset fund-of-fund range.

Northern Trust and Timeline then worked consultatively to explore this proposed investment solution, along with an operating model for managing and servicing the funds. We ensured that details of the structural design that were important to Timeline were factored into the proposal.

Northern Trust’s understanding and flexibility ultimately led to Timeline appointing us for several reasons that included:

• Independence. It was extremely important to Timeline to ensure that the fund mirrored the existing MPS offering as closely as possible and that they maintained their independence. Timeline valued that Northern Trust did not have an internal ACD and leveraging Northern Trust’s existing relationship with the appointed ACD ensured it could act with independent oversight of the fund and focus on the sole task of acting in the best interest of the end investors. It was also important that the underlying building blocks of the fund-of-funds structure remained diverse. Northern Trust’s flexibility to build an open architecture structure with the inclusion of third-party managers was unique among the proposals received and allowed Timeline to retain their independence.
• Institutional capabilities. Timeline quickly realised the breadth of capabilities that would be required in launching the fund and as a global custodian, Northern Trust’s asset servicing capabilities were very attractive to them. Timeline were able to appoint Northern Trust with responsibility for the custody, fund administration and depository services that none of the other managers they enquired with were able to offer. Northern Trust’s institutional approach in this regard also ensured no conflicts of interest that may have presented themselves with the other managers who already offer their own UK domiciled funds of a similar nature to UK retail investors.
• New funds. Northern Trust was willing and able to launch new fixed income and equity funds to fit the profile of the fund. For example, NTAM created non ESG versions of their existing global bond funds and were able to work with the benchmark provider to construct the funds in accordance with Timeline’s requirements, such as ensuring the index was float adjusted to reflect the true investable universe.
• NURS structure. Northern Trust’s commitment to working with Timeline to create a UK-domiciled non-UCITS Retail Scheme fund structure provided the flexibility that Timeline were seeking. This meant access for their clients to the UK’s Financial Services Compensation Scheme (FSCS) protection and increased flexibility with respect to ownership of the underlying funds which are stricter under UCITS regulations.
• Pricing. To be immediately competitive, it was vital for Timeline that they were able to offer the fund at an ongoing charges figure in the low 20 basis point region. Whilst not initially the cheapest quote, Northern Trust and Timeline were able to work together and structure the pricing agreement to enable Timeline to achieve this goal.
• NTAM brand. Creating the UK-domiciled NURS fund also allowed NTAM to grow its brand in the UK retail market. As part of the proposal NTAM agreed to work closely with Timeline to support their marketing and sales efforts in spreading awareness of the fund throughout their adviser community, participating in webinars, conference sponsorship and accompanying Timeline on their roadshows around the country.

The Result

Timeline announced the launch of the new multi-asset fund, on 15 May 2025 and received official Financial Conduct Authority approval on 8^th July. Northern Trust was appointed as the sub–investment manager on the fund-of-funds structure. This is a UK domiciled non-UCITS Retail Scheme (NURS) that will see Timeline’s clients investing in NTAM funds alongside those of third-party managers. The structure consists of four portfolios (100% equity, 80%, 60% & 40%), each of which invests into underlying ‘building blocks’ consisting of 50% NTAM funds. The remainder is allocated between three additional managers.

Northern Trust was also appointed as provider of custodian, depository, and fund administration services to the fund range – with Timeline noting our flexibility and speed as key factors in our appointment for both asset management and asset servicing solutions.

The combination of our investment management capabilities and asset servicing expertise – including our expertise in delivering global custody, depositary, and fund administration services to UK funds – enabled us to respond Timeline’s consultation with a turnkey solution that both met its objectives and expediated time-to-market for its first proprietary fund range.

Our speed in putting together the right proposal, NTAM’s clear commitment to the UK market and support to grow the brand, combined with the capability set that Timeline could leverage in our asset servicing business, resulted in a solution that benefited all parties involved. Initial feedback from Timeline’s adviser clients has been extremely positive and, with significant client interest in the fund, there is a strong initial pipeline which Timeline envisage will only grow stronger in the near future.

For more information about Timeline visit: www.timeline.co

[i] Source: Timeline: We've hit 10-billion in AUM - but this milestone is about so much more, 8 July, 2025

[ii] FT Advisor: Timeline launches multi-asset fund, May 15 2025