After much speculation about the impact of RDR on investment companies, a report commissioned by the Association of Investment Companies (AIC) using Matrix Solutions’ Financial Clarity shows a 53% increase in adviser and wealth manager investment company platform purchases in the first six months of 2013 in comparison to the same period in 2012.
Total investment company purchases reached £147m, a 53% increase on the corresponding period in 2012 when purchases were at £96m. Six platforms provided the data on investment company purchases, namely Transact, Nucleus, Ascentric, Raymond James Investment Services, Elevate and Novia.
Ian Sayers, Director General, Association of Investment Companies (AIC) said: “It’s encouraging to see such a strong increase in platform purchases by advisers, albeit from a low base. The data backs up the positive anecdotal feedback we have been receiving from investment company managers. The AIC has seen a strong increase in adviser interest in investment companies this year. In 2012 we trained 813 advisers compared to over 1,100 over the year to date, with many more advisers signed up for training this autumn.
“We realise there’s a lot more work to do, but we are heading in the right direction. Advisers are much more engaged with the sector than we have seen in the past, with many attending training sessions to find out how they can include investment companies in client portfolios.”
· Investment company platform purchases have steadily increased, rising from £142m in 2010 to £179m in 2012.
· The UK Growth & Income and Global Growth sectors are the most popular sectors, accounting for a combined 32% of investment company purchases. Other popular sectors include: Asia Pacific – Excluding Japan, Property Direct – UK, UK Smaller Companies and UK Growth.
· Transact and Ascentric are the largest contributing platforms with 90% of purchases of investment companies by financial advisers in 2012.