Listed Alternative Credit most popular Q1 sector with financial advisors and wealth managers

By Daniel Lanyon on Wednesday 21 June 2017

OpinionAlternative LendingDigital Banking

Intermediary investors looked to fixed income alternatives as the Brexit Effect began to be felt and Trumponomics faded.

Intermediary investors increasingly looked to fixed income alternatives as the 'Brexit effect' began to be felt and Trumponomics faded.

The most popular area of the market in the Association of Investment Companies universe in the first three months of 2017 was the Specialist: Debt sector encompassing such as areas of Alternative Credit as P2P loans, direct lending and CLOs.

The latest research from the Association of Investment Companies (AIC) using Matrix Financial Clarity revealed purchases of investment companies by advisers and wealth managers on adviser platforms hit a record level over the 12 months to end of March 2017 at £777m.  This is 11 per cent higher than in the year to December 2015 (£698m), which was the previous record for a 12-month period. 

The first quarter of the year was, more broadly, the second highest on record or purchases of investment companies.For the first time, Sector Specialist: Debt was the most popular investment company sector, accounting for 14 per cent of all purchases in Q1 2017. 

Commenting on the results, Ian Sayers, chief executive of the AIC said: “It is very positive to see adviser purchases of investment companies at a record level over the last 12 months and demand for training is stronger than ever.”

“It’s interesting to see that the specialist debt sector, which focuses on illiquid debt, has taken the top spot for Q1 2017. It seems that buyers on adviser platforms are becoming increasingly aware of the strength of the closed-ended structure for accessing illiquid assets.”

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