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Adviser funding firm purchases hit file in 2021

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 Firms (AIC) reveal that funding firm gross sales surged final yr.

Within the fourth quarter of 2021, purchases amounted to £334m, the second highest quarterly whole 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 median of 1,516 corporations utilizing funding firms in 2020, up 34% yr on yr.


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

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

Within the fourth quarter of the yr, the Property – UK Logistics sector noticed the very best internet demand. The VCT Generalist sector, which hardly ever options among the many high sectors for internet demand, jumped to fourth place.

Transact accounted for 45% of purchases in 2021, and 51% within the fourth quarter. Aside from Transact, the main 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 Firms (AIC), stated: “Final yr set new information 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 targeted on multi-asset investing and capital preservation, noticed notably robust demand in a yr 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 internet demand within the last quarter of the yr, indicating rising curiosity in buying and selling VCT shares on platforms.”

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