Assets held on platforms grew 6.5% to £865.8bn in the three months to June as net sales broke through £17bn for the first time, according to data released today.

This compares with a 5% rise in the FTSA All Share index as easing restrictions and consumers spending more led to a robust recovery for markets.

Gross flows for platforms in Q2 jumped to £41bn while net sales broke through £17bn for the first time in record, according to the latest data from Fundscape.

A surge in younger investors and demand for digital wealth services benefited platforms with strong D2C propositions. Hargreaves Lansdown’s net sales rose to £3.7bn (a 22% rise on the previous quarter), while direct to consumer sales at AJ Bell, Aegon and Fidelity were almost level with adviser channel sales.

Assets under advice for the retail advised market ended the quarter at 545.8bn, representing 63% of all platform assets. Gross advised sales were £20.9bn, 51% of all gross sales. Net sales were £10.1bn.

Vertically integrated advice and platform business True Potential rose to the top of the net sales table for advised platform business ahead of Transact with net sales of £1.4bn for the quarter. For year‐to‐date net sales, however, Transact tops the net sales leader board (£2.8bn), with Aviva close behind (£2.7bn).

Bella Caridade‐Ferreira, CEO of Fundscape said: “It’s been gratifying to see younger investors take an interest in their finances and invest this past year. Now that lockdown restrictions have eased and normal life is on the horizon, the D2C spike is likely to drop to more normal levels.

“But some things won’t go away — demand for ESG, digital wealth management, and low‐cost investment are trends that are here to stay. Demand for advice and investment is strong, but investors want it in a different format. 

“The first half of the year was boosted by the ISA season and pent‐up demand from 2020. Sales in the second half are likely to be robust but not as strong. There is still a lot of cash on the sidelines — UK households have accumulated some £168bn in excess savings that will be gradually spent or (hopefully) invested.”