Assets across the platform industry surged in the second quarter, which turned out to be one of “Olympic-style proportions,” as Covid restrictions eased and consumer spending ramped up.
While the FTSE All Share rose by 5% in the three months to 30 June, platform industry assets jumped 6.5% to £865.8bn, according to data from research house Fundscape.
The spike was aided by the “tail-end of ISA season,” according to the analysis, and a winning combination of excess cash and pent-up consumer demand.
Gross flows jumped to £41bn over the period, while net sales broke through £17bn for the first time on record, topping Q1’s already impressive performance.
“It’s been gratifying to see younger investors take an interest in their finances and invest this past year. Now that lockdown restrictions have eased and normal life is on the horizon, the D2C spike is likely to drop to more normal levels,” said Bella Caridade-Ferreira, CEO of Fundscape.
“But some things won’t go away — demand for ESG, digital wealth management, and low‐cost investment are trends that are here to stay. Demand for advice and investment is strong, but investors want it in a different format,” she added.
Platforms with strong D2C offerings soar
Those platforms with a strong D2C offering saw net sales leap. Hargreaves Lansdown brought in £3.7bn worth of net sales across advised and D2C channels, a 22% improvement compared to the first quarter. Year-to-date the FTSE 100 group has brought in more cash than any other platform, with net inflows of £6.2bn.
Close behind Hargreaves in Q2 was AJ Bell and Aegon, which both raked in £2.1bn in net sales.
True Potential held the top spot for the adviser platform with the highest net sales figure in the quarter, up at £1.4bn, with Transact taking second place at £1.3bn, though Transact leads on net sales for the year to date, having amassed £2.8bn.
See also: Hargreaves Lansdown sees booming sales as investors splash the cash in Q1
