Purchases of investment companies by advisers and wealth managers on platforms increased by 29 per cent in the second quarter this year, compared with the second quarter of 2013, according to data from the Association of Investment Companies.
Purchases of investment companies in the second quarter reached a record high of £120.9m, compared with £93.7m in the same period last year.
However, sales of investment companies decreased slightly in the second quarter, to £72.1m from a high of £77.3m in the previous quarter.
Investment company purchases in the 12 months to June reached £422.9m, a 48 per cent increase on the 12 months ended June 2013.
Ian Sayers, director general at the AIC, said it was very encouraging that the increase in annual adviser purchases of investment companies through platforms have more than doubled since Retail Distribution Review was implemented.
He said: “Adviser purchases of investment companies have increased every quarter but there is still plenty of demand for training.
“This autumn our adviser education programme continues with online and face-to-face seminars and we have recently launched a new introductory guide on investment companies.”
Mr Sayers recently warned that advisers and platforms need to offer better access to investment companies, refuting suggestions that most platforms do not offer them.
Currently the three largest platforms - Cofunds, FundsNetwork and Skandia - do not offer trusts, arguing that adviser demand is minimal.
However another seven platforms - Transact, Nucleus, Ascentric, Raymond James Investment Services, Elevate, Zurich and Novia - do offer investment company access for advisers.
Transact and Ascentric continue to be the top platforms for investment company purchases, with market shares of 46 per cent and 22 per cent respectively in the first half of 2014. Alliance Trust Savings is third with 17 per cent of the market share.
Global and UK equity income sectors were again the most popular for advisers and wealth managers, accounting for 18 per cent and 16 per cent of the total purchases of investment companies in the second quarter respectively.
peter.walker@ft.com
