The use of platforms by asset managers is set to surge over the next three years, according to research by Skandia Investment Group.
The survey reveals that while the majority of asset managers already see platforms as an important distribution channel – 71 per cent of those surveyed transact at least 25 per cent of their retail business via a platform with 43 per cent transacting over 50 per cent – the vast majority (79 per cent) believe their business will see a further increase in the use of platforms over the coming years.
The endorsement from the asset management industry comes at an important time for the platform market which, having grown rapidly in recent years, is set to become the dominant distribution channel in the lead up to and beyond the Retail Distribution Review.
Rob Williams, chief sales and marketing officer at SIG, says: “Respondents gave a big thumbs up to platforms as a distribution channel with an overwhelming number predicting an increase in their use over the coming years. As a method of transacting business, platforms and other open architecture solutions are rapidly becoming the primary method of distribution with nearly half of respondents already transacting 50 per cent or more of their retail business in this way. The signs are that this is likely to increase further over the next three years.”
The findings are part of a broader study by SIG into the future of fund management, to be published on 6 December 2010.
