DIY investment assets fall by 13% in Q1 2020 but accounts rise to an all-time high

28 May;

DIY platform and robo assets fell by 13.4% in Q1 2020 as global stock markets crashed, dragging portfolios down. The diversified nature of portfolios provided some cushioning in falls – by comparison, the FTSE 100 fell by nearly double, shedding 24.8% in the first three months of the year.

  • The bigger brand platforms fell by a range of 12% to 20%.

  • The average fall was 15.1% across the 6 largest providers.

  • Robo advisers were slightly more insulated from AUA declines and their change in assets ranged from 14.4% growth to a fall of 5.9%.

  • Vanguard was a notable exception to the decline in assets, posting growth of 14% in the quarter to reach £2.6 bn in UK assets from DIY investors on their proprietary platform.

However, most of these declines are attributable to the fall in global markets seen at the end of March, not a loss of appetite from retail investors. In fact, customer numbers rose by an average of 3.1% for the quarter across all providers.

Vanguard had the fastest growth, with 35% growth in customer numbers in the quarter. PensionBee and AJ Bell Youinvest also had strong customer growth, both seeing increases of 14% and 13% respectively.

By comparison market leader Hargreaves Lansdown posted an increase of 7.4% in customer numbers from the slightly longer four month reported period of January to April this year.

Total DIY investor accounts rose to an all-time high of 5.95 million by the end of March 2020, reflecting greater access and interest in investment markets by consumers than ever seen before.

 

MD Holly Mackay comments:

Although it is too soon to have a fuller picture of what Q2 numbers will look like, we know that investor appetite remains high. We anticipate customer numbers will continue to grow. Platforms have reported strong trading activity and we have not seen the exodus that other market crashes have heralded in the retail space. Our research indicates that after the crash, 54% of investors were planning on buying, with trackers and global solutions being the preferred route. Just 2% reported they were planning to sell.

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ENDS

 

Notes to Editors: 

1. Boring Money is an independent research and content business which provides information, tips and Best Buys to consumers. The business conducts regular research with industry providers and consumers and looks at the developing DIY investment market from both the customer and provider perspective. Boring Money holds test accounts with 30 providers and also holds regular focus groups and interviews with consumers to ensure regular input and feedback from the user perspective.

Founder Holly Mackay has worked in the investment industry for 20 years and is supported by a team of 15 researchers, analysts and marketing execs. Boring Money is not regulated to give personal financial advice, nor is it regulated by the industry watchdog.

2. Data has been collected directly from the providers. Boring Money has been collecting this data on a quarterly basis since December 2015.

The 6 biggest providers referred to are Hargreaves Lansdown, Interactive Investor, Fidelity, AJ Bell, Barclays and Halifax. AUA and quarterly change data is estimated for Halifax.

Top 3 providers in terms of customer number growth only includes providers who report data directly to Boring Money and have given permission to disclose it.

3. Figures on investor intentions, featured in Holly Mackay’s comment, are taken from an online survey conducted with Boring Money readers between 13th and 16th March. We received 606 responses from readers who currently hold investments i.e. funds, shares or bonds.


For media enquires please contact:

Jamie Ovens, Boring Money

jamie@boringmoney.co.uk

 

About Boring Money:

(www.boringmoney.co.uk)

Boring Money is an independent research and content business which provides information, tips and Best Buys to consumers. The business conducts regular research with industry providers and consumers and looks at the developing DIY investment market from both the customer and provider perspective. Boring Money holds test accounts with over 25 providers and also holds regular focus groups and interviews with consumers to ensure regular input and feedback from the user perspective.

Founder Holly Mackay has worked in the investment industry for 20 years and is supported by a team of 10 researchers, analysts and marketing execs. Boring Money is not regulated to give personal financial advice, nor is it regulated by the industry watchdog.

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