Purchases of investment trusts on adviser platforms fell by 28% from 2022’s record high, as part of overall decline in all product purchases during the year, according to data compiled for the Association of Investment Companies (AIC) by ISS Financial Clarity.
At £948 million, purchases of investment trusts on adviser platforms were 28% down year-on-year from 2022’s record high of £1.3 billion.
The AIC points out that last year saw a 3% decline in purchases of all products on adviser platforms, from £184.9 billion in 2022 to £179.2 billion in 2023.
The data show that net demand for investment trusts on adviser platforms in 2023 was negative for the first time since records begin in 2011, with sales exceeding purchases by £53 million over the year. In the previous year, net demand was positive, at an all-time high of £474 million.
The Global sector was the most purchased in 2023 (accounting for 11% of all purchases), followed by Flexible Investment, a reversal of their positions in the ranking the previous year. The third most purchased sector in 2023 was Infrastructure, followed by UK Equity Income and UK Smaller Companies.
Nick Britton, research director of the Association of Investment Companies (AIC), said: “Last year was challenging for investment trusts with the average discount reaching its widest level since the financial crisis. Our data shows there was both a lower volume of purchases on adviser platforms, and more selling, compared to the previous year – resulting in the first year of negative net demand we have seen since 2011.
“Within this broader picture, some sectors saw positive net demand, such as Renewable Energy Infrastructure, UK Smaller Companies and Global Equity Income. More than 1,700 firms were active buyers of investment trusts on adviser platforms during the year – more than double the number of buyers ten years ago.”
