‘RDR to blame for loss of market share’: Adviser

The IMA’s monthly sales statistics for January 2014 have revealed that gross retail sales of funds through intermediaries - including wealth managers, stockbrokers and advisers - stood at £4.8bn, with market share falling year-on-year from 48 per cent to 40 per cent.

UK fund platforms have increased their share by 9 percentage points over the year to capture most of the market, rising from 44 per cent to 53 per cent since January 2013. Gross retail sales on fund platforms stood at its highest level of £6.4bn last month.

Meanwhile, equities continued to be the best-selling asset in the IMA tables with net retail sales of £464m.

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UK equities also maintained its crown as the best-selling region, with sales valued at £664m.

The best selling IMA sector last month was Targeted Absolute Return, with net retail sales of £343m, followed by UK Smaller Companies at £241m, the highest level the IMA has ever recorded for the sector.

The month’s worst selling IMA sector was Sterling Corporate Bonds, seeing outflows of £225m. Fixed income also saw net outflows of £229m.

Isas were also troubled by net outflows of £9m, though this is significantly lower than the figure for January 2013, when outflows were valued at £307m.

David Gibson, director of County Down-based Gibson Financial Planning, said: “Our loss of market share for fund sales is definitely attributable to the RDR, with advisers having to be very strict about minimum investment size and clients voting with their feet by going direct.

“However, we have just recently dealt with a new client who had a substantial direct portfolio who could be persuaded to move it on-platform with us once we were able to explain the value of added advice.”

IMA SectorRanking in Jan 2014Net retail sales in Jan 2014Ranking in Dec 2013Asset Class
Targeted Absolute Return1£343m4Other
UK Smaller Companies2£241m7Equity
UK All Companies4£213m1Equity
Europe excluding UK 5£200m13Equity