Citing research, which revealed a 67 per cent increase in adviser purchases through platforms during 2013, Mr Sayers said: “One year on, it’s clear that investment trusts have significantly benefitted from the RDR, with purchases increasing dramatically.”
He added that demand for adviser training on investment trusts remained strong, with seven AIC adviser seminars starting in June. A 12-page report by research firm Matrix Solutions and commissioned by the AIC, revealed that total investment trust purchases through platforms grew from £196.6m in 2012 to £328.4m last year.
Purchases reached a high point during the fourth quarter of 2013, rising by 70 per cent on the same period in 2012 to £86m.
Transact and Ascentric were the top platforms for investment trust purchases in 2013, with 53 per cent and 26 per cent of the market respectively.
Simon White, head of investment trusts for Blackrock, said: “We have seen an increase in adviser interest in investment trusts post-RDR. It is still a small market, but there is growing recognition of its benefits and long-term performance.”
Andrew Smith, chief operating officer for Axa Wealth’s Elevate platform, said: “We have seen a significant increase in investment trust purchases made through the platform. In the final quarter of 2013, we introduced a stockbrokering service with reduced trading charges and aggregated dealing.”
He said demand for investment trusts had continued in the first quarter of this year.
| Most popular investment company sectors for adviser purchases through platforms |
| Sector UK growth and income 18% Global growth 17% Property direct 6% Asia Pacific 5% Infrastructure 5% Source: AIC/Matrix Data |
Adviser view
Andrew Whiteley, managing director of Hertfordshire-based Provisio Chartered Financial Planners, said: “We tend to stay away from investment trusts due to concerns over risk and gearing, and prefer to build our own passive model portfolios.”
