In the first three quarters of the year investment trusts sales on platforms totalled £745m, already surpassing the total for the whole of 2016, which stood at £671m, and the previous record of £698m which was hit in 2015.
While third quarter sales of £235m was higher than the £175m recorded in the third quarter of 2016, they fell short of the £252m and £257m sales registered in the first and second quarters of 2017 respectively.
Accounting for 18% of adviser purchases, the global sector remained the most popular in the third quarter, followed by UK equity income (10%). Taking third and fourth spot were two property sectors, Property Direct – UK (10%) and Property Specialist (8%).
According to the Association of Investment Companies (AIC) the third quarter saw the launch of three new funds in the sector, all of which were real estate investment trusts (Reits); Residential Secure Income Reit, Triple Point Social Housing Reit and Warehouse Reit. Additionally, there were fund raisings from Empiric Student Property and GCP Student Living.
The main adviser platforms for investment company purchases during the third quarter were Transact with 41% of the market, Alliance Trust Savings and Ascentric with 18% each, and FundsNetwork (6%).
Ian Sayers, chief executive of the AIC, said: “It’s fantastic that 2017 is already a record year for adviser investment company purchases, even without counting purchases in the fourth quarter. Advisers are clearly recognising the benefits of investment companies including their strong long-term performance, income advantages and suitability for illiquid assets.
“The latest quarterly data also shows the continuing popularity of property investment companies since the Brexit vote, and the problems experienced by open-ended property funds. There was significant fundraising in the quarter, and for the first time, property sectors made up two of the four most popular sectors for advisers and wealth managers.”
