Statistics
Platform Sales Of Investment Trusts Surge Since New UK Regulatory Regime Kicked In
New figures show how UK regulatory changes, among other factors, have driven a rise in sales of investment products via platforms.
Total purchases of investment companies in the first nine
months of 2013 reached £241 million ($394 billion), up from
£145.5 million in
the comparable period of 2012, highlighting the impact of new
regulations in the UK, according to the
Association of Investment Companies.
Purchases of investment companies by advisor in the third
quarter of 2013 reached a record high of £83.3 million, more than
double the
figure for Q3 2012 of £40.8 million. Six platforms provided the
data on
investment company purchases, namely Transact, Nucleus,
Ascentric, Raymond
James Investment Services, Elevate and Novia, the AIC said in a
statement.
The report was
commissioned by the AIC using Matrix Solutions’ Financial
Clarity.
Since the advent of the Retail Distribution Review at the start of 2013 - which stamps out use of trail commissions paid by investment firms to advisors - the wealth management industry has seen a change to how advisors and individuals buy investment products.
“It’s early days but the Retail Distribution Review appears to be
having an impact on
the industry. It’s really positive that we’ve seen such a
significant increase
in adviser platform purchases of investment companies this year,
albeit from a
low base. The AIC have trained over 1,400 advisors in 2013, a
considerable rise
in comparison to just over 800 last year,” Ian Sayers, director
general of the
Association of Investment Companies, said.
In other findings, the AIC said that although the third
quarter of 2013 saw a small fall in total purchases made by
advisors and wealth
managers on platforms across all product types (down 1.3 per
cent), investment
company purchases continued to rise, up 3.2 per cent compared to
Q2 2013.
UK Growth and Income, Global Growth and Global Growth and
Income were the three most popular sectors for advisor purchases
of investment
companies in Q3 2013, accounting for 44 per cent of total
purchases.
Transact and Ascentric remain the top platforms in terms of
investment company purchases, but Nucleus, Elevate and Novia
continue to grow
their market share, the statement added.
