Total investment company purchases on platforms by advisers and wealth managers were £452.7m in 2014, 19 per cent higher than the £379.1m in 2013 and 106 per cent up on the £219.3m in 2012.
Data from the Association of Investment Companies, compiled using Matrix Financial Clarity, showed that in the fourth quarter last year, platform purchases of investment companies were at £110.3m, 10 per cent higher than purchases of £100.3m during the same period in 2013.
However, investment company purchases were stable when compared to £110.6m in the third quarter of 2014.
There was also a significant increase in sales, which rose 40 per cent to £290.9m compared to £208.4m in 2013, suggesting some advisers and wealth managers are taking profits and rebalancing portfolios, according to the industry body.
Ian Sayers, chief executive at the AIC, said it was very encouraging that adviser purchases of investment companies on platforms 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,” he added.
Mr Sayers put some of this down to the AIC training over 3,000 advisers in response to RDR, increasing resource with the recruitment of a new head of training in Nick Britton.
“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.”
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, accounting for 49 and 20 per cent of the market respectively in 2014.
Alliance Trust Savings meanwhile, increased their market share increasing to 18 per cent in 2014 from 12 per cent in 2013.
The data also showed that global and UK equity income sectors were the most popular for advisers and wealth managers in 2014 overall, accounting for 18 and 13 per cent of purchases respectively.
peter.walker@ft.com
