Fidelity has hit back at Cofunds and Old Mutual Wealth claiming it now has a “competitive advantage” over the rivals that have failed to add ETFs to their platforms.
Fidelity, Novia and Brewin Dolphin, during a media panel event, addressed an earlier claim by Cofunds and Old Mutual Wealth that there was a low level of demand for ETFs.
Panellists argued platforms which provide DFM services and ETFs with “cost effective and granular exposures” have a competitive advantage.
“Despite the pervading mindset in much of the industry about the need for ETFs on platforms, we are seeing growing demand from advisory firms and private investors, who are looking to include ETFs in their overall portfolios – in most cases alongside mutual funds,” said Stuart Welch, head of brokerage at Fidelity International.
“As we are keen to provide advisers and investors with what they need to manage their portfolios, we took the decision to expand our existing ETF offering later this year.
“Providing greater choice is fundamental to meeting the demands of UK advisers and investors and we see our expanded ETF range as a competitive advantage in the current environment.”
Bill Vasilieff, chief executive at Novia, said he expects the increase in ETFs sales on the Novia platform is a trend that is set to continue as trading costs fall.
“We need to break the cycle of misinformation in the market about ETFs: they are simple tools that can be used to provide access to specific markets that are not available in the unit trust and OEIC market,” he said.
“We are actively positioning our platform for the advisers and investors looking to build diversified portfolios, and believe that ETFs will be increasingly important in a world where investors want greater transparency and choice.”
Claire Perryman, head of iShares Wealth Management and retail sales UK at BlackRock, said ETFs have challenged the status quo when it comes to investing.
Robin Beer, national intermediary manager at Brewin Dolphin, said he would like to see a broader group of platforms integrate ETFs into their platform offering, as well as other tools in order to provide greater choice.
The comments from BlackRock, Novia and Fidelity come after earlier this month both Cofunds and Old Mutual Wealth told FTAdviser offering third party investment opportunities were not considered an immediate concern due to “low levels of demand”.
Stephen Wynne-Jones, head of marketing at Cofunds, said demand for ETFs and investment trusts was still very low – less than 3 per cent of platform assets under adminstration being typical via these investment types.
Despite this, he said Cofunds would look at developing a service, but added that the Legal & General-owned platform has “higher priority projects at the current time”.
