Advised platform gross flows remain high but outflows continue to rise | latest lang cat platform research shows mixed picture

Advised gross platform sales in Q2 2024 remained at a similar, elevated level to the strong numbers of the first quarter. That’s according to the latest langcat platform research data released today.

The research from the lang cat has also revealed that total advised gross sales of £18.65bn (-0.06% vs. Q1 2024) are some of the highest quarterly sales numbers since the record-breaking sales of 2021 and, looking further back, to the DB transfer boom in 2017 and 2018.

However, outflows from advised platforms continued to rise for an eighth consecutive quarter. Though a 2.56% increase quarter on quarter to £15.77bn (Q1 2024 £15.38bn) represents a slower quarterly increase to outflows, the continuous rises mean advised outflows are up 30.35% year on year (Q2 2023 £12.10bn).

With gross sales flat and outflows rising, that leaves advised net sales at a precarious £2.88bn for the quarter, and -12.28% on the first quarter.

However, for the first time since 2017, we have a platform in Quilter that has topped both the advised gross and net sales tables, owing to increased flow from its IFA community alongside its own advisers. Following Quilter in a close second for net sales is fellow FNZ-backed platform Aviva.

Across all platforms from a product perspective, pensions continue to command a significant majority of net sales. Though ISAs continue to struggle, with more business leaving ISAs than has come on for the last five quarters, and for seven of the last eight.

Rich Mayor, senior analyst at the lang cat, comments:

“There’s a continuation of strong gross flows into platforms again this quarter. Our recent research with advisers suggests that most of the business they’ve written this year has been transfer business, and transfers are included in the gross sales numbers we get from platforms. Some advisers are quite active in this space, and a surprising amount have told us they’ve chosen a new primary or secondary platform in the last year.

“But aside from the strong gross sales numbers it’s not all good, with outflows from advised platforms rising for the eighth quarter in a row. Advisers are still telling us it’s for the same main reasons: paying off mortgages and other debt, helping family members, and increased competition from products that are better in a high-interest rate environment like cash and annuities.

“The question is whether we’ve reached the peak? A rate cut, and reduced inflation should pave the way for reduced outflows and improved net sales in future, particularly if interest rates continue to come down.”