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Execution only assets hit £103bn record
by Sarah Miloudi on Sep 13, 2013 at 13:03
Assets under administration at execution only stockbrokers have hit a record £103 billion.
According to the latest industry report by ComPeer, which benchmarks the performance of 150 wealth managers, private banks and stockbrokers, execution only outfits enjoyed a strong second quarter while private client firms struggled.
ComPeer said its findings marked a reversal of the 'upbeat' trends it picked up on during the first three months of the year. Its analysts also pointed out that a dearth of advice and support had long been predicted in the mass affluent space, and as a result, investors may now be taking investment decisions 'into their own hands'.
Moreover, while volumes were down 3.1% quarter on quarter, ComPeer's data showed that execution only firms accounted for the bulk of trades.
Close to 2.6 million trades were placed online, including spreadbetting figures and CFDs, though execution only firms also noted a dip in volumes, because during the previous quarter more than 2.7 million were placed online.
In the wealth manager space, ComPeer said firms saw a 2.3% reduction in revenues on the back of a decrease in asset values, though lower staff number helped mitigate further increases in costs.
Sadly, however, this was not enough to protect wealth managers' bottom lines, and ComPeer said some firms were not immune to a reduction in profitability.
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