Platform industry suffers worst Q2 sales since 2010
Hargreaves Lansdown attracted £902m in net sales for the second quarter of 2023.
According to Fundscape's latest edition of The Platform Report, sales were a «bloodbath», with gross sales rising to £34bn compared to Q1 2023, but with net sales plummeting to £5.5bn from £9.4bn.
This took the net-to-gross ratio to just 16.4% (down from 26.8% in the previous quarter) making it the worst second quarter for platform sales in 13 years.
Looking at individual companies, Aegon enjoyed the highest gross assets for Q2 (£8.6bn) as well as the first half of the year (£18.6bn), while also coming in top for net sales in H1 2023 at £3.6bn.
However, AJ Bell scored the highest net sales in the second quarter at £1.1bn. This was followed by Hargreaves Lansdown at £902m and True Potential at £893m.
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Meanwhile, flows were also down by an average of 48% against second quarters over the past decade.
However, stock market performance gave assets a reprieve during the three months, with the FTSE All-World Index up by 3.2%. This reflected in increased revenues for platform assets which were back over the £900bn mark for the first time since Q4 2021.
The picture did not seem much better for adviser platforms during the second quarter of 2023, as net sales delivered the lowest figure since Q4 2011.
Quilter topped tables for gross sales for both H1 (£4bn) and Q2 (£2bn), while True Potential came up first for net sales, recording £1.8bn in H1 and £852m in Q2 2023.
All adviser platforms suffered a downturn in gross and net inflows, while a small number registered a second quarter of net outflows.
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