Xplore saw an 8.7 percent decline in funds under administration (FUA) in the period from December 31 to the end of March, which it attributed to the market downturn. Over the same period, the benchmark ASX All Ordinaries fell 22 per cent.

Market volatility resulted in reduced FUA administrative fees for the quarter, but the decline was reported to be largely offset by higher transaction fees due to increased trading activity and increased cash margin from increased cash levels.

Reviewing its data from March, Xplore noted that cash held increased over the period, which it believes will be ready to re-enter the market as volatility normalizes, a potential boon for corporates looking to recapitalize by raising .

Portfolio positioning is seen to vary between investment managers and their mandates.

While many are revaluing portfolios more defensively towards cash, there was also evidence of some investment managers selectively increasing equity exposure in some portfolios after being undervalued for a period while waiting for more attractive valuations.

"We have some investment managers taking advantage of stop losses in their portfolios, so exposure to growth assets was reduced early in the market downturn in favor of cash," Xplore said.

Xplore CEO Mike Wright commented that the challenging conditions highlighted the value of the platform's managed discretionary account service.

"The ability to transact quickly and efficiently during volatile market conditions is critical," the company said in a statement.

"The absence of the time-consuming need to contact all clients before executing trades has allowed the wallets (where appropriate) to quickly adapt to market conditions."

Mr Wright added: "It is proving to be extremely efficient and beneficial to advisers as they rebalance clients' asset allocations and manage high levels of trading."

"Overall, our revenue is in line with internal expectations, with FUA levels relatively outperforming recent market movements."

The higher level of cash also offset the fall in cash margin due to platform re-pricing following the RBA's cash rate cut.

The platform previously announced that it had launched its "One Platform Program" to reduce costs and create operational efficiencies. In addition, the management team is looking to increase the cost of operating the dock during the crisis.

Xplore is set to release a quarterly activity report next week.

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting mainly on banking, financial services and wealth.

Prior to joining the team in 2018, Sarah worked in commercial media and produced stories for a current affairs program on public radio.

You can contact her at [email protected].