Adviser funding firm purchases hit file in 2021

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Funding firm purchases by advisers through platforms hit a file £1,298m in 2021, a rise of 23% on 2020.

Figures compiled by ISS Monetary Readability for the Affiliation of Funding Corporations (AIC) reveal that funding firm gross sales surged final 12 months.

Within the fourth quarter of 2021, purchases amounted to £334m, the second highest quarterly complete on file. The highest quarter for purchases was the primary quarter of 2021 at £384m.

Web demand for funding firms on adviser platforms (purchases minus gross sales) was £320 million in 2021, a rise of 29% on 2020.

The variety of corporations buying funding firms averaged 2,028 throughout the 4 quarters of 2021, in comparison with a mean of 1,516 corporations utilizing funding firms in 2020, up 34% 12 months on 12 months.

 

Measured by purchases, the most well-liked funding firm sectors in 2021 had been International (17% of all purchases of funding firms on adviser platforms), Versatile Funding (8%), Infrastructure (6%), UK Fairness Revenue (6%), International Smaller Corporations (4%) and UK Smaller Corporations (4%).

By way of web demand, the highest sector in 2021 was Versatile Funding, adopted by Property – UK Logistics, Infrastructure, International Smaller Corporations, Asia Pacific and International.

Within the fourth quarter of the 12 months, the Property – UK Logistics sector noticed the best web demand. The VCT Generalist sector, which not often options among the many high sectors for web demand, jumped to fourth place.

Transact accounted for 45% of purchases in 2021, and 51% within the fourth quarter. Other than Transact, the key platforms for funding firm purchases had been Raymond James, FundsNetwork, Ascentric, 7IM and Quilter Wealth Options. Collectively, these high six platforms accounted for 93% of funding firm purchases.

Nick Britton, head of middleman communications on the Affiliation of Funding Corporations (AIC), stated: “Final 12 months set new data each for funding firm purchases on adviser platforms, and the variety of corporations shopping for funding firms on these platforms.

“Our Versatile Funding sector, which is dwelling to funding firms centered on multi-asset investing and capital preservation, noticed notably sturdy demand in a 12 months that was marked by persevering with uncertainty over the Covid-19 pandemic. It’s encouraging that enterprise capital trusts featured among the many high sectors by web demand within the last quarter of the 12 months, indicating rising curiosity in buying and selling VCT shares on platforms.”




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