The platform industry broke every record going in 2021 as global stock markets looked to recover from the pandemic.
According to Fundscape, UK platform assets rose by 19% to £933bn ($1.28bn, €1.11bn) in 2021 from £784.6bn in 2020.
Isas made up 24.2% of the platform’s assets (£228m), while Sipps and pensions (£415m) and DC pensions (£53m) made up 44.7% and 5.7%, respectively. Other products entitled ‘rest’ made up 25.4% at £236m.
The retail advised market was 62.4% of the platform assets with £581.7m.
It wasn’t just market performance that boosted the industry, gross and net flows jumped to new highs of £164bn and £69bn — eye‐watering increases of 29% and 92%, respectively.
‘Against all odds’
Bella Caridade‐Ferreira, Fundscape chief executive, said: “Against all odds, the platform industry was home to its best annual sales in 2021.
“Despite the pandemic, 2020 had turned out to be a good year for retail wealth management, but 2021 was a fantastic one despite rampant inflation, and uncertain economic and political outlooks weighing on investor sentiment.
“Those factors could take their toll in 2022, but with inflation and interest rates starting to climb aggressively and retail banks showing no sign of passing on interest rate rises to savers, we expect investors to double-down on their investing efforts.
“The Isa season will set the tone for the rest of the year. While it’s unlikely to match 2021’s sales figures, it’s going to be a robust 2022.”
