We all know that 2022 was a tough year, but our numbers show just how tough it was for the retail wealth management industry. Stock market volatility played a significant part with assets under management dropping to £549bn compared to £603bn the previous year.
Meanwhile, the combination of market uncertainty and the cost-of-living crisis weighed heavily on flows. Full-year gross and net sales were £184.4bn and £18.3bn respectively compared with gross flows of £179.5bn and net flows of £41bn in 2021. So while gross sales have risen slightly, net sales have dropped dramatically, which means there was far less new money flowing into the industry and existing money was rotating in and out the sectors.
Financial advisers and DFMs account for the largest proportion of assets (66%). They punched well above their weight for flows — combined gross sales for the year were £118.5bn (66% of total gross flows), and net flows were £20bn for the year – 109% of industry total sales — meaning that other channels were in net outflow.
For the second year running, Tatton is the leading intermediary firm by gross flows. But this year FE Investments is snapping at its heels, highlighting the inroads the firm is making into the advice world. Consolidators also feature strongly in both tables, with Progeny entering the top 10 for the first time in 2022.
2023 is likely to be equally tough going. We’ll keep you posted on a quarterly basis, but in the meantime if you’d like to know how Finscape can support your business with accurate, fresh, timely and relevant distribution intelligence, get in touch.