At the end of 2022 just four platforms of the 21 monitored in the lang cat’s data had a higher AUA than they had 12 months previously. Those four were True Potential, Hubwise, Multrees and Morningstar Wealth Platform.
A fourth quarter recovery in asset values, aided by positive movements in stock markets, wasn’t enough to move more of their fellow platforms into positive territory at the end of a tough calendar year.
Since 2021, the lang cat’s data has shown the advised platform market running quarterly outflows of around £10-11bn. A big part of that is because retirement plans that were put on hold during Covid were then put into action, which raised the level of regular outflows from adviser platforms. With gross sales suppressed throughout the year, and outflows up, the result is the lowest advised net sales (£4.3bn) figure on our records in Q4, breaking the previous record low set the previous quarter in Q3 2022 (£5.5bn).
It’s not quite time for platforms to panic, but a lot of the same headwinds remain going into 2023. There may be a bit of a bounce in Q1 and Q2, but that will likely be due to investors using up ISA and pension subscription limits.
Rich Mayor, senior analyst at the lang cat, comments: “True Potential’s acquisitions and subsequent integrations keep on trucking with 12.4% growth in advised assets, aided by £4.9bn of advised net sales in 2022, £1bn ahead of the next closest platform, Aviva (£3.9bn).
“The models at Multrees and Hubwise mean they’re subject to some big swings up and down our sales tables, but a strong final quarter for both helps their asset growth sit at 15.6% and 10.3% respectively for the year. Multrees’s £7.69bn total advised gross sales for the year just pipped Quilter (£7.52bn) to first place for the 12 months in 2022.
“Morningstar Wealth Platform has punched above its weight all year, and its model portfolio functionality and long list of DFM MPS providers has encouraged firms to consolidate more assets after trialling the platform. It scores highly on our service ratings and the challenge for all the smaller platforms delivering great service is how this is maintained as their businesses scale.”
