UK investment platform assets tumble 100 billion pounds in 2022-Fundscape

Date:

- Advertisement -

The value of customer assets on British investment platforms has tumbled more than 100 billion pounds ($115 billion) this year, as a poor economic outlook and cost-of-living crisis drive investors to cash, industry tracker Fundscape said on Thursday.

A chill has hit the sector this year after a buoyant 2021, when trading platform growth was fuelled by consumers investing a pandemic-driven savings glut and by a social media-driven meme stock frenzy which saw an army of small investors pile into shares of GameStop, AMC and other once-unfashionable companies.

Platform assets have fallen this year by 105 billion pounds, or more than 10%, to 825 billion pounds ($946.44 billion), Fundscape said.

The slide in assets partly reflected torrid market conditions, Fundscape said, adding sales also slumped to multi-year lows.

Direct-to-consumer and platforms offering advice recorded gross sales of 26.1 billion pounds ($29.94 billion) in the third quarter, their worst showing since the fourth quarter of 2016, in the aftermath of Britain’s shock vote to leave the European Union.

Third-quarter net sales of 4.4 billion pounds were at their lowest since the fourth quarter of 2011.

“It will be a bumpy ride for the platform industry as the world adjusts to a new normal of higher inflation and lower disposable income,” said Bella Caridade-Ferreira, CEO of Fundscape.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

ADVERTISEMENT

Popular

More like this
Related

IMF: South Africa needs decisive efforts to cut spending

South Africa needs more decisive efforts to cut spending...

World Bank sounds alarm on ‘historical reversal’ of development for poorest nations

Half of the world's 75 poorest countries are experiencing...

Ghana fails to reach debt deal with international bondholders

Ghana has failed to strike a deal with two...

Nigeria files tax charges against Binance after executive flees custody

Nigeria has filed tax evasion charges against cryptocurrency platform...