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True Potential, Aviva & Transact lead on platform sales

True Potential, Aviva & Transact lead on platform sales

True Potential, Aviva and Transact are among the top platforms when it comes to advised sales in Q3, according to Fundscape's latest platform data.

All three of these platforms recorded net sales in the region of £1.3bn between July and September.

AJ Bell tailed £300m behind with net sales of £1bn, whilst Standard Life came in fifth place, with £882m in net sales for the quarter.

During the three month period, True Potential - which netted the most sales at £1.35bn - sold a majority stake to private equity house Cinven, for an undisclosed amount to fuel its growth.

Fundscape said True Potential's recent acquisitions of advice firms, and hence continuous migration of adviser assets to its platform, played a big part in why it topped quarterly net sales numbers.

The platform's chief executive told FTAdviser in September that the private equity backer "see[s] further consolidation in the market", hinting at future acquisitions and even more growth.

Top 5 advised platforms by net sales in Q3 '21
True Potential£1.348bn
Aviva£1.326bn
Transact£1.307bn
AJ Bell£1bn
Standard Life£882m

"Private equity money is investing heavily in various parts of the industry from platforms to advice firms and technology, enabling consolidation, and fuelling rapid growth and disruption," said Bella Caridade-Ferreira, Fundscape's chief executive.

"As a result, we expect platform assets to grow strongly over the next five years."

Caridade-Ferreira said her firm's "realistic projection" for total advised platform assets by 2026 is £1.4trn, or a more optimistic £1.7trn.

Looking at net sales for the year so far, True Potential falls down to third place (£3.9bn), whilst Transact jumps to first with £4.1bn, and Aviva remains in the middle with £4bn.

AJ Bell also remained in fourth place with £3bn, as Abrdn crept into fifth place with £2.8bn.

As a whole, advised platform sales trended down between July and September following a high in the first quarter of 2021. Nevertheless, Fundscape said this year is still on track for being the best year on record for the channel.

Across direct-to-consumer and advised channels, net sales fell back to £13.7bn in Q3, after they broke through £17bn for the first time on record in Q2.

"Despite the difficulties of the past two years, the retail wealth management industry is as strong as ever," said Caridade-Ferreira.

"The first half of the year benefited from the Isa season and an influx of cash that had been sitting on the sidelines since the start of the pandemic."

The chief executive concluded the third quarter "was quieter", but she is still confident business activity will pick up again in the final three months of 2021.

ruby.hinchliffe@ft.com