The fund platforms industry continues to be dominated by four major players who could use the current economic climate to expand their businesses, according to research from Lipper Fund Market Information (FMI).
The UK Fund Platform Industry Report, released today, says that Skandia, Cofunds, Fidelity FundsNetwork and Hargreaves Lansdown account for 88% of all platform assets between them.
Bella Caridade-Ferreira, the head of market research at Lipper FMI, says that the volumes of these assets continue to increase, presenting a challenge for the smaller independent wrap providers in Britain.
“In the current uncertain environment, consolidation is perhaps inevitable and many large foreign institutions will undoubtedly be watching for an opportunity to gain entry into the complex UK market,” she says.
The research also found that platforms now account for 18% of the British fund industry compared with 16% at the end of 2007.