Research by the AIC using Matrix Financial Clarity found a jump in the number of advisers and wealth managers buying into the Property Direct – UK sector in Q3, the first time the sector has recorded any more than a 10% share of purchases.
The rise is due to a growing awareness of the benefits of holding “illiquid assets” such as property in a close-ended structure since the Brexit vote, according to AIC chief executive Ian Sayers.
“It’s telling that the Property Direct – UK sector was the most popular adviser sector in the quarter following the referendum vote. Given the problems experienced by the open-ended property funds at this time, more advisers have been recognising the benefits of holding illiquid assets like property in a closed-ended structure,” Sayers said.
After property, the most popular sectors were UK Equity Income, with a 14% slice of purchases, followed by global, infrastructure and UK All Companies and UK Smaller Companies.
There were also a record number of firms buying investment companies on adviser platforms, up 7% on Q2 to 1,764 in Q3, signalling a 43% in advisers and wealth managers using investment companies in the first nine months of 2016.
Sayers added the AIC would try to reach more advisers through a new online training service next year.
