The platform industry breaks all records in 2021

Platform industry breaks all records.

The platform industry breaks all records in 2021

We’re unable to publish individual platform data until the last publicly listed platform has reported its results on 9th March 2022. As a result, here is the first of two press releases for Q421/2021 platform data1. This press release reviews the significant growth in assets and flows at a market level in 2021.

Pandemic? What pandemic? The platform industry broke every record going in 2021. Assets rose by 19% to£933bn aided by global stock markets recovering their pre‐pandemic élan. And it wasn’t just market performance that boosted the industry; gross and net flows jumped to new highs of £164bn and £69bn — eye‐watering increases of 29% and 92% respectively.

Stock markets may have been strong, but the UK was also battered by some persistent economic headwinds resulting in rampant inflation, fuel and labour shortages. But investors remained sanguine, however. Though the first half of the year is usually the best thanks to the ISA season, the platform industry broke new records in the final quarter of the year with gross flows of £46bn and net flows of £24bn! With these kinds of sales figures, it’s no surprise that the industry is awash with private equity money and platforms are changing hands left, right and centre.

Fundscape CEO, Bella Caridade‐Ferreira, said ‘Against all odds, the platform industry was home to its best annual sales in 2021. Despite the pandemic, 2020 had turned out to be a good year for retail wealth management, but 2021 was a fantastic one despite rampant inflation, and uncertain economic and political outlooks weighing on investor sentiment.’

‘Those factors could take their toll in 2022, but with inflation and interest rates starting to climb aggressively and retail banks showing no sign of passing on interest rate rises to savers, we expect investors to double-down on their investing efforts. The ISA season will set the tone for the rest of the year. While it’s unlikely to match 2021’s sales figures, it’s going to be a robust 2022.’

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Notes to Editors:

1. The second press release will include platform rankings by assets and flows.

The Platform Report is a confidential report published by Fundscape UK Ltd. A total of 19 platforms are included in the analysis. Platform coverage is estimated at 98% of the platform universe.

For further information or background please contact:
Bella Caridade‐Ferreira, tel +44 (0)7980 241298, bella@fundscape.co.uk

Photo by Anton H from Pexels