The influence of the autumn 2024 budget is evident in emerging product distribution trends. Platforms and advisers reported outflows from SIPPs in advance of IHT changes according to our UK Adviser Platforms: Investment Distribution report.
Life assurance bonds now made up around 15% of platform net flows – much higher than in the past. They are not a core part of the adviser toolkit yet and don’t always align with advisers’ wider investment propositions, but they are sticky assets. We expect to see innovation here as demand builds – on-platform bonds are set to become a key battleground for adviser platforms over the coming years.
ETFs still don’t get much look-in with advisers. Only a fifth recommend them and they comprise a tiny proportion of adviser platform assets. Their transaction fees remain particularly problematic for inclusion in MPS.
UK adviser platform assets dipped in Q1, dragged down by portfolio performance. Total platform assets ended down a percentage point at £865bn.
But overall net flows on adviser platforms look stronger than they have been since inflation and market volatility unnerved investors. Meanwhile, we saw record gross flows, although a chunk of these represent increased platform switching, as consolidators have changed their propositions and technology. All this suggests that platform competition is heating up.
We explore all this and more in our latest UK Adviser Platforms: Investment Distribution report. For more information, please get in touch.