Assets across advised platforms grew in the final quarter of 2024, despite record outflows.
The latest data compiled by the lang cat showed assets increased by 3.82% in the fourth quarter and 12.5% compared to the same period of 2023, to £616.23 billion.
Growth was fuelled by strong new business across the whole of 2024, which peaked in the last quarter to £20.92 billion, up 42% year-on-year.
The lang cat said strong business flows helped to offset the increase in outflows, which spiked around the time of the Autumn Budget. Outflows increased by 6.96%, reaching a record £16.54 billion.
With gross sales growth outpacing the increase in outflows, advised net sales of £4.38 billion represent the highest like-for-like quarterly sales total since the second quarter of 2022.
Rich Mayor, senior analyst at the lang cat, said: “The Budget caused a spike in withdrawals particularly in GIAs and pensions, but they’ve dropped off since.
“The proposed changes to IHT and pensions was the biggest surprise in November, and we’ve researched advice professionals to see how they’re thinking of mitigating the changes. Increasing use of onshore bonds, as well as trust planning, and utilising gifting more are the most popular plans on the table at the moment, and all affect platforms.”
Mayor added that bond sales increased in 2024, although they continue to be dwarfed by pensions and ISAs.
“Some advisers are waiting to see what happens, exploring other strategies, and some don’t think the proposals will end up being the same by 2027. For platforms, we think this means that the more traditional elements of a proposition like product and investment range, as well as technical support and trust options are likely to play a key role in success for 2025 and beyond,” he added.
From a platform perspective, Quilter, Aviva, Transact ended the year as they started it, with all making the top three for gross and net advised sales, the lang cat said.
Quilter topped the table, with £3.7 billion gross sales in the fourth quarter and £1.92 billion net sales.
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