Sales growth figures published in the past few days by both FundsNetwork and Selestia suggest use of ecommerce trading has increased in line with the rises seen in stock market indices and higher levels of equity trading.
Rising equity prices raise the value of the underlying equity investment parts of funds’ portfolios.
Along with rising interest in investing in equities either directly or through collective investment vehicles, this may help explain why FundsNetwork has reported a 130% increase in assets under custody, while Selestia has reported sales in the first two months of this year up 75% on the same period last year.
FundsNetwork is claiming assets under custody in excess of £7bn, while Selestia claims assets under management of about £1.8bn.
The latter has also just reported a move into profitability for its full-year 2005, according to UK GAAP.
Selestia says this has moved it into profit ahead of time, and ahead of its competitors.
The news comes as Legal & General last week saw its share price jump almost 8% in a single day on news profits nearly doubled last year on sales of investment and pension products.The results helped push the FTSE 100 index through the 6,000 points level on Friday last week, also helped by rises in Prudential’s share price.
L&G reported overall group pre-tax profit gained more than 100% to £1.6bn compared with its 2004 results.
The provider said A-Day would constitute a significant boost to its pensions business, this on top of the 20% increase in new life and pension business to £331m recorded in 2005 on a European Embedded Value basis.
L&G also noted its investment in the Cofunds platform, and said it would launch a multi-manager product on it in April.
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