Our latest data on adviser platform purchases shows that investment companies are in higher demand than ever, with the private equity sector jumping up the charts
Latest research from the AIC using Matrix Financial Clarity has revealed purchases of investment companies by advisers and wealth managers on adviser platforms hit a record level in the first half of 2017 at £514m, the highest figure ever for the first six months of a year.
This represented an increase of 74% on investment company purchases in the first half of 2016 (£296m) and a 26% increase on investment company purchases in the first half of 2015 (£408m).
Looking at Q2 2017 alone, purchases of investment companies on adviser platforms reached £264m, the second-highest quarterly level of purchases on record. This was up 6% on the previous quarter (£249m) and 63% higher than Q2 2016 (£162m). The only quarter with a higher value of investment company purchases was Q2 2015 (£274m), when Woodford Patient Capital Trust launched.
The most popular sectors were Global (15% of purchases), Property Direct – UK (13%), UK Equity Income (11%) and Private Equity (6%). While Global and UK Equity Income always feature among the top sectors, the Property Direct – UK sector jumped in popularity following the EU referendum last year. This is also the first time that Private Equity has been ranked this highly and accounted for such a large share of purchases.
Ian Sayers, Chief Executive of the Association of Investment Companies said: “It’s extremely positive to see adviser purchases at record levels in the first half of 2017.
“It’s clear that advisers are not only recognising the benefits of investment companies for equities but are increasingly aware of the strength of the closed-ended structure for accessing illiquid assets.
"The Property Direct – UK sector has been popular since the problems of open-ended property funds last year, and it’s interesting to see that the Private Equity sector, one of the few ways investors can access portfolios of unquoted companies, is gaining adviser interest.”
Additional findings
Ian Sayers, chief executive, AIC