// Strong ISA & pension flows offset by market turbulence in Q2 of 2015

11 Aug 2015 Strong ISA & pension flows offset by market turbulence in Q2 of 2015

Stock market turbulence put a brake on platform asset growth in the second quarter. But despite the FTSE 100 falling by 4% during the quarter, platform assets rose by £5bn to £382bn, a rise of 1.3%.

Despite stock market volatility, platforms registered a new high in gross sales as the ISA season and pension freedoms converged to boost platform business. As a result, gross sales for the platform industry totalled £24.6bn, and on a year-to-date basis £47bn against £41bn in 2014. Net sales came to £11.1bn, bringing the year-to-date to £21.6bn against £20.6bn the previous year.

 

TOP 3 PLATFORMS BY ASSETS IN Q215 (£bn) TOP 3 PLATFORMS BY ASSET GRTH IN Q2 (%)
Cofunds £74.7bn Aviva 9%
Fidelity £60.2bn Hargreaves Lansdown (est)* 7%
Hargreaves Lansdown (est)* £57.3bn Zurich 4%

 

TOP 4 PLATFORMS BY GROSS SALES
IN Q215 (£m)
TOP 4 PLATFORMS BY NET SALES
IN Q215 (£m)
Cofunds £5.5bn Hargreaves Lansdown (est)* £1.8bn
Fidelity £3.0bn Standard Life £1.3bn
Hargreaves Lansdown (est)* £2.8bn Aegon * £1.2bn
Zurich £1.9bn Zurich £1.1bn

 

TOP 4 PLATFORMS BY GROSS SALES
IN 2015 (£m)
TOP 4 PLATFORMS BY NET SALES
IN 2015 (£m)
Cofunds £11.0bn Hargreaves Lansdown (est)* £3.7bn
Fidelity £6.2bn Standard Life £2.3bn
Hargreaves Lansdown (est)* £5.5bn Aegon £2.1bn
Old Mutual £3.4bn Zurich £1.8bn

 

Cofunds and Fidelity were once again the leading platforms by gross sales, while Hargreaves Lansdown, Standard Life, Aegon and Zurich topped the net sales tables. Their sales successes were driven by different factors. Hargreaves Lansdown’s D2C business was boosted by ISAs. Strong retail advised business across a variety of products was behind Standard Life’s success, while Aegon and Zurich were underpinned by pension activity.

 


PRODUCTS

ISAs
Pensions/
Sipps
DC/
Workplace

Rest

Total
AUA 111,154 99,302 39,136 132,330 381,921
Q215 Gross flows 5,574 7,225 2,943 8,840 24,582
Q215 Net flows 3,247 4,507 1,776 1,581 11,112
YTD gross flows 9,781 13,947 5,482 18,138 47,348
YTD net flows 5,239 10,171 2,206 3,994 21,610

 

Sales by product were also surprising with ISAs strong despite the focus on pension freedom and the more uncertain investment outlook. Bella Caridade-Ferreira, CEO of Fundscape, said “All eyes were on pension freedom and the potential impact on investment flows, but in the background ISAs were quietly registering their best quarter on Fundscape records with gross and net flows up by £1bn and £800m respectively relative to the same period in 2014.”

Sales into pension products have been elevated since pension freedoms were first announced. Despite the inevitable slew of cash withdrawals that were expected once pension freedom went live, net sales into pension and Sipp products were strong at £4.5bn. “Fears of significant cash withdrawals proved to be baseless; although there was an early spike in cash withdrawals, platforms reported that withdrawals settled down to more normal levels by the end of the quarter,” said Caridade-Ferreira.

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 Q115 data and historical trends. Aegon is not a contributor. Its figures are estimated from Q1 actual 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
No Comments

Sorry, the comment form is closed at this time.

Send this to friend