Investment company total purchases on platforms by advisers and wealth managers were £452.7m in 2014, 19% higher than £379.1m in 2013 and 106% higher than £219.3m in 2012, according to data by the Association of Investment Companies (AIC) using Matrix Financial Clarity.
In Q4 2014, platform purchases of investment companies were at £110.3m, 10% higher than purchases of £100.3m in Q4 2013 and 90% higher than purchases of £58.1m in Q4 2012.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Investment company purchases at £110.3m in Q4 2014 were stable when compared to £110.6m in Q3 2014.
Whilst 2014 was a strong year for purchases there was also a significant increase in sales, which rose 40% to £290.9m compared to £208.4m in 2013, suggesting some advisers and wealth managers are taking profits and rebalancing portfolios.
AIC chief executive Ian Sayers said, "It’s very encouraging that adviser purchases of investment companies on platforms have continued to rise in 2014 and have more than doubled since pre-RDR levels. Though sales have increased, we should remember that this trading activity all helps to improve liquidity.
"The AIC has trained over 3,000 advisers in response to RDR, and has recently increased its resource in this area, with the recruitment of Nick Britton, the AIC’s Head of Training. This will help us to increase awareness and understanding of investment companies with a refreshed training programme and the capability to meet and support more advisers."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe Global and UK Equity Income sectors were the most popular for advisers and wealth managers in 2014 overall, accounting for 18%and 13% of purchases respectively.
The Infrastructure and Property Direct – UK were the third and fourth most popular sectors over 2014, accounting for 8% and 7% of purchases respectively.
Transact and Ascentric continue to be the top platforms for investment company purchases, accounting for 49% and 20% of the market respectively in 2014. Alliance Trust Savings are increasing in popularity with financial advisers, their market share increasing to 18% in 2014 from 12% in 2013.
