Tough third quarter for platform industry, data shows

Economic instability is hurting investor confidence, experts say

Platform flows have plunged amid a third-quarter "meltdown" as the cost of living crisis, rampant inflation, the uncertain economic outlook and political instability together negatively impacted investor confidence, research from Fundscape has shown.

Investors abandoned risk in their droves and retreated to the safety of cash, according to the data. As a result, gross sales fell to £26bn, the lowest since the fourth quarter of 2016. Net sales plummeted to just £4.4bn, the lowest industry net sales in more than a decade. Assets shrank by 1.5% to £825bn in the three months to September, less than the FTSE 100's 3.8% decline, Fundscape said. The industry has lost a total of £105bn in assets, with an inevitable impact on platform revenues, it added. "Fortunately, some platforms can boost their flagging revenues with higher clipping...

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