Latest lang cat data reveals advised platform outflows hit all-time high of £14bn

Advised platforms suffered £14bn of outflows in the third quarter of 2023, up more than 12% on the previous quarter’s figures (£12.38bn). This sets a record high, according to data from the lang cat published today. Total outflows from advised platforms this year-to-date amount to £38.1bn, compared to £29.2bn for the same period in 2022 – a 30% increase.  

Net platform sales are also at a record low of £1.7bn, having fallen further from Q2. The combination of record high outflows and record low net sales means there was next to no asset growth for advised platforms. Assets increased by just 0.06% (from Q2) to end the quarter at £545.96bn.

Quilter maintained a lead with £69.65bn assets under administration (AUA) followed closely by Abrdn with £68.46bn.

Commenting on the data, Rich Mayor, senior analyst at the lang cat, said: “Money being withdrawn from advised platforms hitting new heights for the third consecutive quarter this year is why net sales and asset growth are minimal this quarter. 

“Advisers are telling us there are two main drivers; clients are withdrawing more to cash savings and also to cope with the cost of living. The responses from advisers are consistent with the conversations we’re having with platforms too.

“Retirement plans and sums needed are likely to have increased due to inflation, cash interest rates are the highest they’ve been for years, as are annuity rates. All of this combines to create a perfect storm for advised platforms.”

He added: “The question now is ‘are we at the peak of this activity?’ and we think yes, just about.

“The fourth quarter is likely to be similar to this one, but with interest rates steady, cash and annuities rates have likely hit a high point. It’s likely that 2024 will be the start of things turning back to something like normal for platforms. But the journey will be slow and recovery fragile.”  

In terms of tax wrappers, withdrawals are being most keenly felt in pensions and ISAs, with record outflows of £7.58bn and £3.84bn respectively (across all channels – not just advised).