The number of investment trusts bought by advisers and wealth managers on platforms dropped by 2 per cent to £131m in the first three months of the year, from the £133.3m figure reported during the first quarter of 2015.
A report compiled by the Association of Investment Companies found Transact topped the list as the most dominant platform for adviser purchases of investment companies over the first quarter, with a market share of 44 per cent.
Alliance Trust Savings was in second place with a 19 per cent market share, followed by Ascentric at 15 per cent.
FundsNetwork, which was the first of the big platform players to add investment companies to its offering last year, has now built up a market share of 8 per cent, making it the fourth biggest adviser platform for investment company purchases.
The AIC research, which used the Matrix Financial Clarity database, revealed adviser purchases had fallen 3 per cent to £131m, from £135.6m between the first quarter of 2016 and the final quarter of 2015.
Ian Sayers, chief executive of the AIC, said adviser purchases of investment companies were influenced by ups and downs in the market and caution from investors in the lead up to the EU referendum.
However, he pointed out investment company purchases peaked in the second quarter of last year, hitting £273.7m following the launch of the popular Woodford Patient Capital trust.
The number of advice firms using investment companies in the first quarter of 2016 stood at 1,232 - the second-highest figure on record - beaten by the 1,260 figure reported in the final three months of 2015.
Mr Sayers said it was “still encouraging” the number of advisers using investment companies remained close to record levels, adding there continues to be strong demand for training in the closed-end investment sector.
Blair Cann, senior partner and adviser for Hertforshire-based M Thurlow & Co, said he was unsure why there was a fall in investment trust sales, adding however the decrease does not appear to be particularly significant.
“I would be looking to see what the next quarter’s sales are before assuming there had actually been some anti-investment trust sentiment among the investors.
He said: “As far as the broader picture is concerned, there are plus and minus points with investment trusts compared to unit trusts and OEICs.
“Generally speaking I have always been much more interested in performance and the manager’s track record than the structure of the investing vehicle.”
katherine.denham@ft.com
