Passives account for 10% of adviser platform assets - Platforum

Younger investors more likely to hold passives

Victoria McKeever
clock • 3 min read

Adviser platforms now hold a tenth of their assets in passive investments, with 9% in tracker funds but just 1% in exchange-traded funds (ETFs), research from Platforum has found.

In contrast, direct-to-consumer (D2C) platforms hold 8% of their assets in passives but with a higher proportion in ETFs - the split being 5% in tracker funds and 3% in ETFs. While few advisers (6%) had clients without any passives in their portfolios, Platforum said passives had not yet become the dominant type of fund. More than half of advisers invested a fifth (20%) or less of clients' portfolios in passives and fewer than one in seven advisers (15%) invested more than half of clients' portfolios in passives. Younger investors were also more likely to invest in passives, according...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

PA360: It is 'impossible' to pick out the best asset class every year

PA360: It is 'impossible' to pick out the best asset class every year

‘The outsourced route is one that a lot of advisers are now taking’

Hope Coumbe
clock 26 April 2024 • 2 min read
PA360: Framing of information to investors 'extremely pervasive'

PA360: Framing of information to investors 'extremely pervasive'

Consumer Duty states consumer biases must not be exploited

Jenna Brown
clock 25 April 2024 • 1 min read
Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read