Adviser sales of investment trusts reach new record high

Ian-Sayers-700.pngAdviser sales of investment trusts hit a record high of £777m over the year to the end of March, surpassing the previous record of £698m in the year to December 2015 by 11 per cent.

Research by the AIC – which used data from Matrix Financial Clarity – also found that in Q1 this year, adviser and wealth manager purchases reached £246m, the second highest quarterly figure on record.

This was 85 per cent higher than the Q1 sales last year, which reached £133m, and 25 per cent more than in Q4 2016, when sales amounted to £196m. The highest number of quarterly sales was in Q2 2015, totaling £273.9m, when purchases were boosted by the launch of Woodford Patient Capital trust.

Sector specialist: debt was the most popular investment company sector in Q1 this year for the first time, accounting for 14 per cent of all purchases, toppling property direct which dropped to second place with 13 per cent of sales.

Chief executive of the AIC Ian Sayers says: “It is very positive to see adviser purchases of investment companies at a record level over the last 12 months and demand for training is stronger than ever.

“The property direct – UK sector was the most popular investment company sector for the previous two quarters, no doubt due largely to the problems of open-ended property funds last year, but it’s interesting to see that the specialist debt sector, which focuses on illiquid debt, has taken the top spot for Q1 2017. It seems that buyers on adviser platforms are becoming increasingly aware of the strength of the closed-ended structure for accessing illiquid assets.”