Platform assets fall on Middle East crisis

Assets under management across advised platforms dropped in the last quarter by 0.26%, because of the conflict in Iran and the Middle East.

That was despite some strong underlying flows across the sector, according to analysis from the Lang Cat.

The analysis showed new business flows of £26.78bn, which set another record quarter for gross sales onto advised platforms.

Outflows dropped after a record high last quarter caused by persistent rumours of what might be in the Budget. The drop of 11.14% this quarter was still the second highest on record.

Advised platform net sales recovered to £7.35bn, up 77.13% compared to the previous quarter and up 37.12% compared to a year previously. They were the best net sales numbers for four years.

From a platform perspective, Quilter, Aviva, Transact continued to dominate flows, as Quilter again broke new records for both gross and net sales. 7IM placed fourth for net sales for the first time.

*Contains estimates. True Potential  excluded as it reported a quarter in arrears. Aegon and Raymond James’s numbers in the quarter are partial estimates as they completed new ownership and acquisition deals. Source: Lang Cat

Rich Mayor, senior analyst at the Lang Cat, said: “This time last year, uncertainty around Liberation Day wiped off any growth in AUM, and this year the conflict in the Middle East has had a similar effect.

“The main difference from a market perspective is that Liberation Day effectively boiled down to negotiating numbers on a chart, and the markets recovered relatively quickly. The conflict in the Middle East is far more complex.”

He said net sales recovered well in a time where markets struggled, “a reverse trend to much of what we’ve seen in recent years in the advised platform market. But how the rest of the year might develop is as uncertain as you could have reasonably predicted at the start of the year.”