Direct platform assets rise over 8%

Direct platform assets grew 8.2% to a new record of £441bn in the second quarter, according to analysts Fundscape.

Direct investors pushed consumer platform gross flows to £19.6bn, with net inflows of £7.9bn.

Platforms benefited from market gains by the end of June as the S&P 500 regained its mojo, posting a 10% gain while growth in the UK was more modest with the FTSE 100 and All Share up 2.1% and 3.2% respectively.

Interactive Investor had the highest net flows for the quarter with £2.4bn, followed by AJ Bell at £1.9bn and Vanguard with £1.4bn.

However, Fundscape noted that AJ Bell’s net flows were boosted by a one-off repatriation of a Halifax book, and without it Vanguard would have “been snapping at its heels”.

Fundscape said that it does not expect inflows to remain as high as those seen in Q2 as we enter the summer months.

Gemma Maher, head of market insights at Fundscape said: “Of course, Q2 straddles the tax-year-end and benefits from use-it-or-lose-it and early-bird ISA investors. We expect net sales to soften over summer and going into autumn. However, D2C investors have demonstrated their ability to navigate some of the behaviours of unpredictable politicians like Trump, maximising opportunities where they can.

“We expect the D2C market to continue its growth trajectory as investors want greater access and opportunity with their savings and investments. Banks are starting to take a greater interest, and brand power will play a part in success as smaller players continue to struggle.” 

InvestEngine also retained its place on the top 5 net sales table, with Fundscape saying its presence highlights the benefits of a creative marketing strategy.