Ascentric, a wrap platform owned by British investment company Royal London has reported a tripling of its dealing cash value following the outcome of the EU Referendum, as investors increasingly turned towards ETFs to implement tactical positions.
Fund providers such as ETF Securities also reported record inflows in the aftermath of the Referendum outcome, inflows into Gold ETFs increased by $201bn on Friday the 24th of June.
For Ascentric, ETF volumes increased by 415% and investment trusts by 56% in the week following the vote, total dealing cash value increased from £7m to £25m, representing a 260% increase.
Ascentric credits the success to its use of more than twenty counterparties, in a bid to establish greater levels of flexibility, as John Taylor, managing director of the firm says. “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 dealing capability provided advisers and DFMs with the ability to trade quickly and achieve the best price for their clients” he argues.