Investment company purchases by intermediaries through platforms rose by 33 per cent in the second quarter of this year, according to figures from the Association of Investment Companies.
The data, calculated by Matrix Financial Clarity, showed that sales spiked to 1,638 in Q2 2016, compared to 1,230 in the previous quarter.
The figure was only 595 in the last quarter prior to RDR, that is Q4 2012.
Adviser and wealth manager purchases of investment companies via platforms in Q2 totalled £160.8m – the second highest quarter on record.The record figure of £273.9m was established in Q2 2015, largely driven by the launch of Woodford Patient Capital, the biggest ever UK-domiciled investment company, according to the AIC.
The two most popular sectors for purchases were global, representing 14 per cent of purchases and UK equity Income (11 per cent), followed by property direct – UK and infrastructure (9 per cent respectively) ahead of UK All Companies (7 per cent).
Ian Sayers, chief executive of the Association of Investment Companies, said: “It’s encouraging that adviser purchases of investment companies continue to be strong after the exceptional contribution of Woodford Patient Capital to last year’s figures.
“The number of adviser firms using investment companies has jumped to record levels, which demonstrates that new firms of advisers are starting to use investment companies. Our experience training advisers also confirms this.”
In addition, Transact maintained its place as the most popular platform, with sales volumes accounting 44 per cent of the market in Q2 2016.
It was followed by Ascentric with 19 per cent and Alliance Trust Savings with 15 per cent.
FundsNetwork, which introduced investment companies in December 2015, took 9 per cent in Q2 2016.
Adviser view
Bill Marshall, financial planner at Newcastle upon Tyne-based Lamb and Associates Lifestyle Financial Planning, said: “Platforms are the new normal. Some do not have investment trusts on them but I imagine this will soon change.”
