The 1,882 firms purchasing investment companies included 1,730 financial advice firms and 51 wealth managers, according to the data report compiled by Matrix Financial Clarity.

The funds invested into investment companies via adviser platforms represented a 22% increase in Q4 2020 (£301m) and a 35% increase on Q1 2020 (£273m).

Net demand for investment companies on adviser platforms (purchases minus sales) in Q1 2021 was £92m, the highest since Q4 2018.

Nick Britton, head of intermediary communications at the Association of Investment Companies, said: “Demand for investment companies via adviser platforms began to recover towards the end of last year, and the latest available data shows that this trend continued into the first quarter of 2021, setting a new record.

“Meanwhile, the number of firms using investment companies is the highest it’s been since 2016, and if you exclude the spike in the third quarter of that year when several open-ended property funds were suspended, it’s the highest ever."

The most popular sectors for purchases on adviser platforms in the first quarter this year were global (18%), UK equity income (7%), and global smaller companies (6%).

Looking at net demand, in the first quarter the most popular sector was commodities and natural resources as concerns about inflation prompted advisers and wealth managers to increase their clients’ exposure.

Transact remained the most used adviser platform for investment company purchases, with an estimated 43% share of purchases.

FundsNetwork handled 14% of purchases, Ascentric 11% and 7IM 9%.