According to new research from the lang cat which was released today, advised platform net sales came in at £5.15bn for Q1 2023, up a healthy 19% on Q4 2022 but down -49% Q1 2022.
It reveals that the £5.15bn recorded in Q1 this year represents the lowest advised Q1 net sales total since 2019 (the lang cat now has more platforms submitting data than it did back then).
Quilter and True Potential once again topped the gross and net sales charts respectively. Quilter is closing in on abrdn for the title of largest UK advised platform by AUA, with both firms pushing the £70bn mark (see table below).
Advised gross sales (£17.73bn) are also up on Q4 2022 (+14%) but are down -16% on Q1 2022. This is likely due to a tax year end-related bounce in business for platforms.
All advised platforms experienced a growth in total assets during the first three months of the year as the FTSE 100 grew 3.55% over the same period.
Rich Mayor (pictured), senior analyst at the lang cat, comments: “The increase in AUA will be welcome to all platforms that charge a percentage charge on assets, which is every single advised platform in the UK. It’ll also mean a rise in percentage ongoing fees for advisers too. Both will be welcome after last year’s tumult.
“But what we’ve been thinking about is whether this represents green shoots of recovery or a false dawn. Unfortunately, we think it’s likely the latter and that the bounce in sales this quarter is simply people utilising their subscription allowances. Platforms we spoke with reported a slow January and February followed by a busy March.
“Outflows from advised platforms are at their highest on our records (£12.6bn) this quarter, up 11.5% from Q4, which leaves net sales comparatively lower than previous first quarter totals of recent years. Any bump in sales in the second quarter will likely be tax year end related.
“This might be about as good as it gets for platform flows this year, as all the same headwinds that faced investors last year still remain. Even if the Government makes good on its pledge to halve inflation this year, another interest rate rise is going to hit mortgage owners, and the cost of living crisis continues to bite and whittle away investable income.”
| Platform | Advised AUA Q1 2023 | Platform | Advised gross sales Q1 2023 | Platform | Advised net sales Q1 2023 | ||
| abrdn | £69.66bn | Quilter | £2.02bn | True Potential | £964m | ||
| Quilter | £69.02bn | Transact | £1.82bn | Transact | £931m | ||
| Transact | £53.97bn | Aviva | £1.66bn | Aviva | £796m | ||
| AJ Bell Investcentre | £47.30bn | True Potential | £1.46bn | AJ Bell | £600m | ||
| Fidelity Adviser Solutions | £46.76bn | abrdn | £1.45bn (est)* | Quilter | £591m |
Need more info on platforms?
Check out IFA Magazine’s latest annual report on investment platforms compiled in conjunction with compliance consultant, Tony Catt, which was released in May 2023.
You can download your free copy of the IFA Magazine platforms report HERE
