The advised platform market remains “resilient” after seeing 12 per cent wiped from its assets in the first three months of the year, compared with a FTSE drop of 25 per cent, according to the Lang Cat.
In the first quarter of the year advised platform assets fell 12 per cent to £394bn, while 'all channel' assets - including advised and institutional assets - also dropped 12 per cent to £489bn.
This was the first time advised platform assets had dropped below £400bn since Q4 2018, however it was against a background of tumbling global markets.
By comparison, the FTSE All Share and the UK’s blue chip index dropped 25 per cent in the three months and the S&P 500 lost 14 per cent as the coronavirus knocked economies and shut down borders.
Mark Polson, principal at the Lang Cat, said: “This fall in assets under administration demonstrates relatively strong performance compared to overall stock market performance in Q1.”
He said this was partly driven by “accidental persistency” — where transfers, retirements and life goals are put temporarily on hold.
Other factors included investors using platform cash services as a haven from market volatility and the fact diversified portfolios were “doing exactly what they are meant to do”.
He added: “We know that markets go up and down, and we’ve seen strong progress since late Q1 in that regard.
“But whatever markets do, platforms are in a good place to demonstrate their resilience over the next two quarters, with both gross and net flows strong in Q1.”
Q1 was also a strong period for net inflows, which rose by 28 per cent in the quarter for 'all channels' to reach just over £9bn.
For the advised market, net flows were up 30 per cent to £7.6bn.
The most popular platform in terms of net inflows in Q1 was the Aviva platform, as investors piled £1.12bn into its services. Other popular platforms included Transact, AJ Bell and FundsNetwork.
| Platform | Net inflow Q1 2020 |
| Aviva | £1.12bn |
| Transact | £1.1bn |
| AJ Bell Investcentre | £900m |
| FundsNetwork | £660m |
| Standard Life | £620m |
Standard Life remains the largest advised platform, with £55.68bn AUA as at March 31, with Old Mutual Wealth and Transact making up the big three.
| Platform | Advised AUA as at March 31, 2020 |
| Standard Life | £55.68bn |
| Old Mutual Wealth | £50.7bn |
| Transact | £35bn |
| FundsNetwork | £33.24bn |
| The Aegon Platform | £31.46bn |
imogen.tew@ft.com
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