Advised platform net sales came in at £2.8bn in the second quarter of 2023, down 38 per cent on the first quarter, according to data from the Lang Cat.
This comes as advised platform net sales rose in the first quarter this year, with Quilter and True Potential topping the leaderboard.
According to the Lang Cat's records, this quarter was the lowest quarterly net sales total.
Net sales are low because money coming onto platforms has continued to fall, with advised gross sales down 7.3 per cent on Q1 to £14.9bn.
Outflows rose to their highest quarterly level at £12.1bn, meaning 80p for every £1 that was added onto platforms between April and June also left.
Rich Mayor, senior analyst at the Lang Cat, said: “We predicted three months ago that the first quarter might be the best we see for platforms in 2023, a forecast that’s been cemented further at the halfway point.
“Gross sales onto platforms are being hit by the ongoing economic headwinds we continue to see in the UK, and net sales are being reduced to all-time lows as outflows are at all-time highs.”
Platform advised AUA
The Lang Cat found that Quilter has been closing on Abrdn to become the largest UK advised platform by assets under administration (AUA) and did so in the second quarter of the year.
It now has £69.46bn AUA versus Abrdn’s £69.35bn. Transact is the third largest with £54.61bn.
The two most vertically integrated platform propositions in Quilter and True Potential once again topped the advised gross and net sales tables respectively.
Platform | Advised AUA Q2 2023 |
| Platform | Advised gross sales Q2 2023 |
| Platform | Advised net sales Q2 2023 |
Quilter | £69.46bn |
| Quilter | £1.97bn |
| True Potential | £851mn |
Abrdn | £69.35bn |
| Aviva | £1.56bn |
| Aviva | £655mn |
Transact | £54.61bn |
| Transact | £1.52bn |
| Transact | £626mn |
AJ Bell Investcentre | £47.80bn |
| True Potential | £1.36bn |
| Raymond James | £430mn |
Fidelity Adviser Solutions | £47.10bn |
| Abrdn | £1.31bn |
| Quilter | £413mn |
Advised platforms experienced a mix of nominal growth or loss in total assets during the second three months of the year as the FTSE 100 fell by 0.31 per cent over the same period.
Mayor said: “The $64mn question is where is this money going? Platforms we spoke with noted an increase in client withdrawals from products to meet the demands of the cost-of-living crisis.
“We’re also hearing that some investors are looking to pay down lump sums on mortgages as their fixed deals come to end.
“For those with unencumbered properties we’re hearing from some advisers that clients are looking to partial and term annuities to help mitigate the more immediate market headwinds.”
sonia.rach@ft.com
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