Assets held on platforms have risen to record levels, with transfers from defined benefit pensions helping to fuel the increase.
Figures from Fundscape show that assets under administration held on platforms have broken through the £500bn barrier in the first quarter of 2017, increasing by 6 per cent to £520bn.
Gross and net sales set new records of £29bn and £13.3bn in the first quarter of 2017 respectively.
The five top platforms by assets remain unchanged, and account for two third of industry assets.
Cofunds tops the table with £86.8bn of assets under management, followed by Fidelity, Hargreaves Lansdown, Standard Life (including Elevate) and Old Mutual.
However, three of the smaller platforms, Aviva, Aegon and AJ Bell recorded double digit growth in the first quarter of this year, thanks in part to their pension provision.
Bella Caridade-Ferreira, chief executive of Fundscape, said the increase in assets was in marked contrast to the beginning of 2016, when economic factors and Brexit fears led investors to stay away.
“After three difficult quarters, investor sentiment began to improve in the fourth quarter of 2016, and gathered momentum in the first quarter of 2017,” she said.
“Nonetheless, pension business was the real driver of platform flows — fuelled by demand for defined benefit transfers and access to pension freedom, net pension sales were up 27 per cent on the previous quarter and 44 per cent on like-for-like sales in 2016.”
Financial Planner Claire Walsh, from Aspect 8 in Brighton, said she was receiving new enquiries about transferring defined benefit pension schemes “at least every other day” at the moment.
“We do have a few clients who we have done this for, but for many clients it isn’t appropriate,” she said. She added that, after the pension freedoms and the increase in Isa allowances, her clients now had very few investments that were outside tax-efficient wrappers.
Trystan Lewis, Chartered financial planner with Griffin Wealth Management in Chester, said that increased transfer values for defined benefit pensions meant that was an increasing part of his business.
“Platforms are part of the pension arena now, which is one reason why they are growing,” he said. However, he added that he was seeing an increased interest in investments from his clients across all forms of investment vehicle, due to confidence in a rising market.
rosie.murray-west@ft.com
