Investment company purchases on platforms by advisers and wealth managers reached a new record high of £125.3m in the first quarter this year, 14 per cent higher than purchases of £109.7m in Q1 2014.
Annual purchases for the year to end Q1 also reached a new high of £468.6m, according to the latest data from the Association of Investment Companies and Matrix Financial Clarity.
However, during the first quarter total purchases of all products were down 2 per cent compared with the fourth quarter last year.
Sales of investment company shares through platforms increased to £77.2m in the first quarter, from £70.3m in Q4 2014, suggesting advisers and wealth managers are taking profits and rebalancing portfolios. However, sales were 5 per cent lower than in Q1 2014 at £81m.
Ian Sayers, chief executive at the AIC, said that the results were promising. “It’s also pleasing that the number of adviser firms purchasing investment companies has increased considerably.
“Demand for investment company training remains high, and our adviser education programme will continue with ten educational seminars across the UK starting in June.”
The global and UK equity income sectors remained the most popular on adviser platforms, accounting for 15 and 12 per cent of total investment company purchases respectively.
Meanwhile, the UK direct property sector has risen in popularity for three quarters consecutively, accounting for 9 per cent of investment company purchases in Q1. Hedge funds became the fourth most popular sector, making up 6 per cent of purchases in Q1, while purchases in the infrastructure sector were down on the previous quarter to 5 per cent.
Transact remains the top platform for investment company purchases, accounting for 53 per cent of the market. Alliance Trust Savings overtook Ascentric as the second most popular platform during the first three months of the year, with market share of 21 and 14 per cent respectively.
The number of adviser and wealth manager firms purchasing investment companies on platforms was 881, up 13 per cent on the 780 recorded during the first quarter last year.
peter.walker@ft.com
