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Fidelity predicts platform market to reach £3tn

Fidelity head of UK fund partners Ed Dymott says the platform market could become a £3tn industry.

Speaking at a Fidelity breakfast briefing in London today, Dymott said: “We actually see that the platform market could turn out to be a £3tn market.”

Referring to the retail investment market in 2007, he said £4.1tn was invested in long-term savings, of which half is invested in pensions, £1.2tn in cash, £963bn in investments, £300bn in insurance bonds, £170bn in mutual funds and £235bn in direct equities.

He said: “Platforms have the ability to capture those assets and because they are open architecture there is a big range of funds and they are cost effective to access. Once that money comes onto the platform, why would it go anywhere else?”

He also said in the next five to 10 years the market will see its first £50bn and £100bn platform.

Dymott says drivers of platform growth will be RDR, more competition and an increased focus on transparency and capital adequacy.

He said: “The opportunities for platforms are unlimited. The way the market and regulation is going, it starts to play into the hands of platforms.”

Fidelity is also making enhancements to Fundsnetwork, including the launch of its new straight through processing system, live from January 18.

Fundsnetwork is also teaming up with Old Broad Street Research to launch a new research centre, featuring full OBSR fund lists. The platform is also developing bulk switching capabilities, auto-rebalancing tools and model portfolios. Fundsnetwork will also be releasing Isa brochures aimed at three different savings groups.

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