Archive

16 Nov

Posted at 08:00h in
Global stock markets were down, but UK stock markets were up in the third quarter. The net effect was that platform assets flatlined with a tiny 0.2% rise to £906bn. The UK economy also flatlined in the third quarter, narrowly avoiding a recession as high interest rates and inflation weighed on consumer confidence and households struggled with living costs. Gross sales were stable at £32.7bn, but uncertainty, lower disposable incomes and the siren call of cash and gilts, resulted in substantial outflows. Net flows plummeted to just £2.3bn — the worst quarterly net sales on Fundscape’s records —resulting in a net-to-gross sales ratio of just 7%. Seven!

17 Aug

Posted at 08:00h in
As the tax-year-end approached, platform activity warmed up and there were high hopes that the momentum would carry through into the second quarter and beyond. Unfortunately, that was not the case. The second quarter of the year spectacularly failed to deliver on the sales front, but stock-market performance gave platform assets a reprieve (and therefore revenues). The FTSE All-World Index was up 3.2% for the quarter, although the FTSE 100 fell by 1.3%. As a result, platform assets were back over the £900bn* mark for the first time since the fourth quarter of 2021 (when we were still feeling optimistic about the future).

24 May

Posted at 07:00h in
It was a difficult first quarter for platforms with the expectation of a recession and the cost-of-living crisis dragging on sentiment and flows. Two Interest rate hikes didn’t help either. Higher interest rates are usually bad for stock markets, but markets appeared to be Teflon-coated in Q1 with the FTSE 100 up 2%, the FTSE All World and S&P 500 up 7%, and the tech-heavy Nasdaq up a whopping 17%. This boosted platform assets to £880bn, although the industry’s £930bn high is still some way off.

10 May

Posted at 12:00h in
After a difficult 2022, the D2C industry had been counting on business picking up in Q1 2023. For many D2C platforms, the ISA season is when they generate most of their flows so a buoyant Q1 is critical for annual revenues. However, a perfect storm of negative factors — rapidly rising interest rates, stubbornly high inflation, the ongoing cost-of-living crisis, a wave of public sector strikes and geopolitical uncertainty —had a major impact on investor sentiment. Despite this, assets rose by 4% on the back of strong stock markets and gross sales rebounded to £11.3bn – well up on Q422, and marginally ahead of Q122 figures.

09 Mar

Posted at 08:00h in
2022 was a tough year for platforms and the final quarter of the year was no exception. Investor sentiment has been battered by a seemingly endless succession of bad news including the squeeze on living standards brought on by inflation, higher taxes, energy prices and the war in Ukraine. All this means customers and new flows are hard to come by and business levels are down. Stock market volatility meant most platforms closed the year with lower assets than they started with.

10 Nov

Posted at 08:00h in

The going got exceptionally tough for the platform industry in the third quarter. The cost-of-living crisis, rampant inflation, the uncertain economic outlook and political instability together had a huge, negative impact on investor confidence. Investors were spooked, abandoned risk in their droves and retreated to the safety of cash.

03 May

Posted at 15:14h in
Rampant inflation, fuel price increases, national insurance hikes and the cost-of-living crisis took an inevitable toll on investor sentiment and market prices – and that was before Russia invaded Ukraine. As a result, the FTSE All World was down 6% for the quarter, sending direct assets below £300bn once again (to £297bn).