iShares’ assets on platforms increase by 34%

The exchange traded funds (ETFs) platform of BlackRock saw its assets held on six platforms reach £746m at the end of 2011, an increase of 34 per cent on the same period in 2010.

Of the platforms – Ascentric, Novia, Nucleus, Raymond James, Standard Life and Transact – assets held on Ascentric and Novia increased most substantially, growing 88 per cent and 96 per cent respectively.

According to fund flows on the platforms, investors put money to work across a range of asset classes.

The two most popular iShares ETFs on the platforms by net flows were fixed income products, with combined net flows of £78.4m, and six of the top 10 were equity products.

David Bower, head of iShares UK, said: “The ETF industry is set to become a major beneficiary of the RDR, and this is already evident from the strong growth iShares saw on key wrap platforms in 2011.

“With the banning of commission to financial advisers as of 2013, ETFs will be on a level playing field with other investment products.

“This, combined with the fact that ETFs offer low cost and transparent access to a broad range of markets, means that ETF use amongst financial advisers and discretionary fund managers is likely to continue to rise.

“During 2012, iShares will introduce a number of new initiatives to spread awareness of ETFs further and to assist advisers in developing greater expertise around how to use them.”

Paul Boston, sales and marketing director of Novia, said: “ETFs are playing an increasingly important role in both advisory and discretionary portfolios on the Novia platform.

“This is proving to be a well-trodden investment strategy that significantly reduces the overall cost of a clients’ portfolio.”