Investments  

IFA use of investment platforms at record high

Investment company purchases on platforms by financial advisers reached a record high of £260.8m for the year to end Q2 2015, according to data published by the AIC.

The figure, calculated by Matrix Financial Clarity, represents a 112 per cent increase compared to the £122.7m worth of sales made during the same period last year, and 108 per cent higher than the previous record high of £125.4m in Q1 2015.

Furthermore, purchases in the first half of 2015 have exceeded the total for 2013 by around £5m to £386.2m.

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Ian Sayers, chief executive of the AIC, said the record-breaking launch of the Wood Patient Capital Trust, made a notable contribution to the sector’s popularity – although purchases rose across the majority of investment company sectors.

Overall, total purchases of all products through platforms increased in Q2 2015 to a record high of £26.3bn – an 8 per cent increase on total purchases in Q2 2014 and an 11 per cent increase on total purchases in Q1 this year.

He said: “It’s exciting that adviser demand for investment companies has soared this year with purchases in Q2 more than double the previous quarter’s all-time high.”

He added: “It’s also significant that the number of adviser firms purchasing investment companies in Q2 increased considerably. We are continuing to see strong demand for adviser training and have a full education programme planned for the autumn, with seminars across the UK, online training seminars and bespoke sessions.”

David Stealey, senior financial planner at Vale of Glamorgan-based Romilly Financial, said: “This increase in investment company purchases through platforms does not surprise me. This is where client money is typically invested. If an adviser goes off-piste and ventures into another area of investment, it is more likely because the client demands it.”

The firm said that previous graduates have come from a variety of different sectors, including marketing, teaching, recruitment, the armed forces, professional sports, accountancy and the legal profession.