Adviser purchases of investment trusts down 28% in 2023
Purchases of investment trusts on adviser platforms fell from 2022’s record high.
Purchases of investment trusts on adviser platforms fell 28% year-on-year to £948 million in 2023, down from 2022’s record high of £1.3 billion, according to data compiled for the Association of Investment Companies (AIC) by ISS Financial Clarity.
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.
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.
Popular sectors
Global was the most purchased sector 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.
“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.”
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."
- ENDS -
Follow us on X @AICPRESS
Notes to editors
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 336 members and the industry has total assets of approximately £267 billion.
- For more information about the AIC and investment trusts, visit the AIC’s website.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
- To stop receiving AIC press releases, please contact the communications team.
