Pandemic, platforms and positioning

2020 saw unprecedented numbers of clients signing up to investment platforms. Many brokers enjoyed trading levels two or three times higher than pre-pandemic norms. With "Lockdown 3” now in place, at a minimum for the next six weeks and potentially until the end of Q1, could this trend continue with a new wave of investors researching and buying investments online?

In July 2020, Warhorse published its comprehensive analysis of the Investment Trust sector; highlighting the changing nature of its share ownership. Our analysis showed 38% of Issued Share Capital is now held via investment platforms (source: WHP/RDIR June 2020). The exponential growth of the investment platform market has benefitted trusts by providing them with modern, efficient and cost-effective routes to reach out to private investors. There are an array of choices easily accessible online now and increasingly competitive on charges. It has, however, presented the trusts with an ongoing challenge - how best to establish and strengthen the resultant relationship with platform investors?

Our latest report, Investment Trusts: The importance of visibility on D2C platforms, examines the drivers for the continued growth of the platform market, reflects on the prominence of investment trusts on platforms and considers how investment trusts can best position themselves to use the platform market as an effective channel rather than a potential barrier between product and consumer.

For a copy of the report, or to discuss it further, please email us at info@warhorsepartners.com