In-house stockbroking brings post Brexit benefits to platform clients

Published: 18 July 2016

Ascentric, one of the UK’s leading wrap platforms, has significantly boosted clients’ portfolios in the week post Brexit through its in-house stockbroking capability.

  • Total stockbroking cash value increased to over £25m from £7m
  • Week on week ETF trading value increased by over 400% following Brexit

The in-house stockbroking team enhanced client returns by £106,000 in the week following the Brexit vote, with advisers having the flexibility and control over when to make trades during the period of significant market volatility. Ascentric’s in-house stockbroking team leverage relationships with over twenty counterparties to ensure the best price is achieved for clients. This differentiates from other platforms that use only a single counterparty and have a fixed time for trading each day.

The increasing popularity of exchange traded funds (ETFs) and investment trusts saw week on week dstockbroking values on the Ascentric platform soar, with ETF volumes increasing by 415% and investment trusts by 151%. The total stockbroking cash value reached £25 million, up over 260% on the previous week, as advisers used these fund structures to implement their post-Brexit strategies.

Dealing volumes on Ascentric w/c 20 June and w/c 27 June

Asset Type

Cash value of orders w/c 20 June

Cash value of orders w/c 27 June

% change in cash value orders

ETFs

£3,702,206.16

£19,085,536.71

415.52

Investment Trust

£2,139,186.15

£3,345,776.09

56.40

Equity

£1,192,975.53

£3,004,706.31

151.87

Total

£7,034,367.84

£25,436,019.11

261.60

Commenting, Jon Taylor, Managing Director of Ascentric, said: “Particularly in times of significant market volatility, such as the week following the EU referendum, advisers must have the flexibility and control to make changes to their portfolios when they want to. Our in-house stockbroking capability provided advisers and DFMs with the ability to trade quickly and achieve the best price for their clients.”

Mark Waters of Skerritts Wealth Management, an Ascentric client, said: “Naturally, we’re really pleased with such a big improvement for our clients. As our business has grown, the synergies between Ascentric’s model portfolio technology and its in-house stockbroking capability has made a much more noticeable impact for us, particularly with ETFs and Investment Trusts. This also validates why we look at stockbroking functionality as part of our due diligence process and why it shouldn’t be a box-ticking exercise.”

 

1. Based on the improvement on the bid/offer spreads on the LSE at the point of execution. In comparison, the total client savings for the whole of 2015 totalled £396,000.

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