// Platforms shake off market correction with strong flows in Q3

10 Nov 2015 Platforms shake off market correction with strong flows in Q3

Download full press release here.

With a stock market correction of 8% during the quarter, it was no surprise that platform assets shrank by 0.7% to £377bn — robust flows and a strong interest in all things pensions cushioned platforms from the worst. Fundscape’s Q3 Platform Report showed that gross flows were slightly lower than the last quarter at £24bn, but net flows rose to a new high of £13bn[1]. On a YTD basis, gross sales were £72bn v £60bn in 2014, while net sales were £35bn v £30bn the previous year.

Bella Caridade-Ferreira CEO of Fundscape said “In spite of economic uncertainty across three continents and a marked stock-market correction, platforms held their own in the third quarter. Pent-up demand for pensions and transfers was a big driver of flows, and this high-octane pace should continue until the end of the year at least.”

TOP 5 PLATFORMS BY GROSS SALES
IN Q315 (£m)
TOP 5 PLATFORMS BY NET SALES
IN Q315 (£m)
Cofunds £5.3bn James Hay £1.6bn
Fidelity £2.4bn Cofunds £1.4bn
Hargreaves Lansdown (est)* £2.2bn Hargreaves Lansdown (est) * £1.3bn
Old Mutual £1.7bn Standard Life £1.3bn
James Hay £1.7bn Alliance Trust Savings £1.2bn

 

TOP 5 PLATFORMS BY GROSS SALES
IN 2015 (£m)
TOP 5 PLATFORMS BY NET SALES
IN 2015 (£m)
Cofunds £16.3bn Hargreaves Lansdown (est)* £5.2bn
Fidelity £8.7bn Standard Life £3.6bn
Hargreaves Lansdown (est)* £8.0bn Aegon* £2.9bn
Old Mutual £5.1bn Cofunds £2.5bn
Standard Life £4.6bn Zurich £2.4bn

 

As expected, the large platforms dominated the gross sales table, but there were some surprises in the net sales arena. Punching well above its weight due to pension expertise was the James Hay platform with net flows of £1.6bn. In particular, it benefited from the bulk transfer of Towry Sipp accounts during the quarter. Despite a mature book of business and a lower net/gross sales ratio, Cofunds moved into second place with net flows of £1.4bn, again thanks to pension-related activity. For the year to date, Cofunds is also fourth for net sales.

Sipps and pensions represent circa 30% of platform assets, but they account for 40% of gross flows and 54% of net flows. “Volumes have been rising fast. Pension sales in Q315 represented a twofold increase on the same quarter in 2014. We’re still very much in a transitional period with flows yet to settle down to a more stable pattern, nonetheless pension freedom is and will continue to be a boon for platforms,” said Caridade-Ferreira.


PRODUCTS (£bn)

ISAs
Pensions/
Sipps
DC/
Workplace

Rest

Total
AUA 107.3 115.8 24.3 129.6 377.1
Q315 gross flows 3.6 9.7 1.1 9.7 24.1
YTD gross flows 13.7 26.3 4.1 27.6 71.7
Q315 net flows 1.7 7.1 0.3 4.0 13.1
YTD net flows 7.2 18.7 1.0 7.9 34.8

 

pension chart

[1] In Q2 gross sales totalled £24.8bn and net sales were £11bn.

Ends-

Notes to Editors:

 The Platform Report is a confidential report published by Fundscape LLP.  To subscribe to the report, platforms must contribute asset and sales data on a quarterly basis. For further information about the report and Fundscape, please visit www.fundscape.co.uk.

A total of 19 platforms are included in the analysis. Platform coverage is estimated at 98% of the platform universe.

*For timing reasons and because the data is market sensitive, Hargreaves Lansdown reports its figures to Fundscape a quarter in arrears. The figures shown here have been estimated from actual Q215 data and historical trends. Aegon is not a contributor. Its figures are estimated from actual Q2 figures.


For further information or background please contact:

Bella Caridade-Ferreira     tel: 020 7720 1183              email: bella@fundscape.co.uk

Administrator
info@fundscape.co.uk
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