Catching self-directed investors
Reaching self-directed investors is not straightforward, nor automatic, yet this group, using direct platforms account, in aggregate, for the majority ownership bloc in investment trusts.
Investors through Direct-to-Consumer (D2C) platforms are typically long-term investors building or preserving their retirement assets. This growing group has offset the decline in ownership by wealth managers in recent years.
In 2021, 120 investment companies completed buy backs totalling £1.9 billion. These included a significant number of traditional international generalists, historically popular with retail investors. But such buy backs indicate a lack of natural demand for shares. A bespoke D2C marketing programme could help drive natural demand. But establishing a meaningful connection with self-directed investors requires visibility and relevance.
Piers Currie and Robert Quinlan, Warhorse Partners, 18 May 2022