Purchases of investment trusts on adviser platforms fell 28% 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.

The AIC said 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.

In the previous year, net demand was positive, at an all-time high of £474 million.

Nonetheless, more than 1,700 firms were active buyers of investment trusts on adviser platforms in 2023 – more than double the number of buyers 10 years ago.

“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,” said the AIC.

“The third most purchased sector in 2023 was Infrastructure, followed by UK Equity Income and UK Smaller Companies.”

AIC Research Director Nick Britton 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.”