Purchases of investment companies on platforms jumped by almost a third in the last 12 months, new data has revealed, despite major platforms still not offering these investments.
Data from the Association of Investment Companies, using Matrix Financial Clarity, found that purchases hit £441.2m this year, a 31 per cent increase on the £336.8m recorded over the twelve months to September 2013.
Over the first nine months of 2014, platform purchases of investment companies reached £342.1m, an increase of 23 per cent on the same period in 2013.
The second quarter was the highest on record, with adviser purchases of investment companies reached £122.2m. Purchases are now up 125 per cent on September 2012.
However, some major platforms still do not offer investment companies and while adviser takeup is clearly rising, it appears to be from a relatively low base.
Transact and Ascentric also continue to be the top platforms for investment company purchases, with market shares of 47 per cent and 21 per cent respectively in Q3, while Alliance Trust Savings’ market share increased in Q3 to 18.5 per cent.
Some IFAs have blamed product complexity, higher risks and lack of access for sales of trusts that have not met some post-RDR expectations.
Ian Sayers, chief executive of the AIC, said that in the wake of the Financial Conduct Authority’s final post-RDR thematic review, it is very positive to hear the rules are working as intended.
“We’re encouraged to see that purchases of investment companies on platforms continue to increase, year on year, and that purchases have more than doubled since the implementation of RDR.”
He added that demand for training remains high, “and our adviser education programme will continue in the New Year with VCT seminars, online presentations and bespoke sessions”.
The global and UK equity income sectors were again the most popular for advisers and wealth managers, accounting for 19 per cent and 13 per cent of the total purchases of investment companies in Q3 respectively.
