AJ Bell and Quilter the 'top' investment platform stocks as Britons take more control of their pensions, that's according to stockbroker Liberum.
The lens has firmly been on the sector following a flurry of high-value takeovers, with Royal Bank of Canada (RBC) recently acquiring asset manager Brewin Dolphin for £1.6bn.
According to data from the World Economic Forum, the UK pension savings gap is expected to reach roughly £23.8tn by 2050, which has seen the government actively encouraging greater personal responsibility among the population.
As a result, emphasis on individuals taking control of their pensions has led to an increase in popularity among saving initiatives, and therefore investment platforms.
The recent buyouts in the sector may therefore point to anticipation by the likes of abrdn and RBC that these platforms will become more in demand as individuals become active in their savings, Liberum said in a note.
AJ Bell and Quilter are favoured by the broker due to their greater earnings growth potential, as well as trading on the lowest price/earnings growth potential.
Liberum adds that the sector continues to be supported by long-term structural tailwinds.