Investments  

Rise in adviser platform purchases

Rise in adviser platform purchases

The value of investment company purchases made on platforms by advisers and wealth managers hit a record high of £125.3m in the first quarter of 2015, data published by the Association of Invesment Companies has found.

The data from Matrix Financial Clarity showed that purchases had increased by 14 per cent from £109.7m in the first quarter of 2014.

In the first quarter of 2013, investment company purchases made on platforms by advisers and wealth managers reached £87.6m.

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Transact remained the most popular platform for investment company purchases, representing 53 per cent of the market.

Alliance Trust Savings overtook Ascentric as the second most popular platform for the quarter, taking 21 per cent of market share compared to Ascentric’s 14 per cent.

QuarterValue of investment company purchases made on platforms by advisers and wealth managers
Q1 2015£125.3m
Q1 2014£109.7m
Q1 2013£87.6m

Source: AIC

The number of adviser and wealth manager firms purchasing investment companies on platforms in the quarter was 881, up from 780 in the first quarter of 2014.

Sales of investment company shares through platforms increased to £77.2m in the first quarter of 2015 from £70.3m in the first quarter of 2014.

The Global sector remained the most popular, accounting for 15 per cent of total investment company purchases.

This was followed by UK Equity Income, which made up 12 per cent of investment company purchases.

Ian Sayers, the chief executive of AIC, said: “Demand for investment company training remains high, and our adviser education programme will continue with 10 educational seminars across the UK starting in June.”

Some major platforms, such as Old Mutual Wealth and Cofunds, still do not offer investment trusts; FundsNetwork offers five Fidelity Worldwide Investment trusts and gives intermediaries access to the Woodford Patient Capital Trust.

An Old Mutual Wealth spokesman said: “We are looking at expanding the range of investments on the platform, but there are no firm timescales for investment trusts at this stage.”

Adviser view

Simon Bonnett, financial adviser at Essex-based Fiducia Wealth Management, said: “The retail distribution review may have been a driver for the popularity of investment companies.

“Also, some advisers have been strengthening their investment teams, and the teams are often keen on using all available regulated investments.”