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Platforms grow by nearly 50% a year

Assets held on platforms are growing by 44 per cent a year and will reach £205bn by 2012, says Lipper Feri.

In its first UK fund platform industry report, published this month, Lipper Feri says assets under administration on platforms totalled £64.6bn at the end of March and are set to reach £83bn by the end of the year.

Former Allfunds director Holly Mackay, who now runs HM Consulting and co-wrote the report, says 47 per cent of new money goes into the industry through platforms and this will grow as more IFAs use them.

Mackay says she expects platforms to diversify from the traditional IFA sector and increasingly tie up with retail banks, building societies and primary advice channels after the retail distribution review.

She says more back-books of business will move on to platforms and boost inflows.

Mackay says: “I was surprised to see how much is still unwrapped or in Isas and Peps. However, although proportionally small, the amounts in self-invested personal pensions and offshore bonds have been growing quickly since 2006, supporting the view that businesses which started as general fund supermarkets are evolving into more sophisticated and fuller wrap offerings.”

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