Advisers to increase investment trust exposure

Research by the Association of Investment Companies (AIC) has revealed 42% of financial advisers will increase their exposure to investement trusts over the next three years.

Annabel Brodie-Smith
Annabel Brodie-Smith

Advisers are more likely to select trusts in the UK equity income sector, with other specialist sectors also considered.

According to the research, 61% of advisers invest through fund platforms, while 51% buy them through wraps.

The research reveals that there is some way to go before advisers see investment trusts as a core holding, with 62% seeing closed-end funds as a specialist holding. Just 15% think they are a core holding.

Annabel Brodie-Smith, communications director at the AIC, says: “We are encouraged by this research, which indicates that many advisers will increase their exposure to investment companies over the next three years and that adviser attitudes towards investment companies will become more positive post-RDR. (article continues below)

“However, there’s still a lot of work for the investment company industry to do to convince advisers of the merits of investment companies and to ensure that they have the necessary knowledge, information and skills to include investment companies in their clients’ portfolios.”