Key Takeaways
- • Retail DIY investors have overtaken wealth managers as a major shareholder class in UK investment trusts, accounting for 35% of total market capitalization versus 28% for wealth managers, according to analysis of over 220 listed investment companies worth £110bn combined.
- • Among affluent DIY investors holding at least $250,000 in assets, 47% expect to engage a financial advisor within the next year, with the figure rising to 45% among those with children, signaling a structural shift toward hybrid advice models as portfolios mature.
- • Younger self-directed investors under 40 with $250,000+ in assets showed sharply increased advisor interest, with 19% "definitely likely" to seek professional guidance within 12 months in 2026, nearly doubling from 10% in 2025, and the 40-49 cohort tripling interest from 6% in 2024 to 18% in 2025.
- • Wealth managers' investment in trusts declined by £1.8bn in 2019, with major wealth groups including Investec Wealth and Brewin Dolphin becoming net sellers; investment company boards are being forced to recalibrate marketing strategies to target the increasingly significant DIY investor base.
- • Retail investors deployed £6.7bn into investment trusts in 2019 alone, bringing their total stake to £38bn, while fintech platforms continue gaining traction among DIY investors for innovation and reliability, intensifying competition in the self-directed investment space.
Summary
A fundamental ownership shift is underway in the UK investment trust market, with retail DIY investors now commanding greater influence than traditional wealth managers. Analysis of share registers across more than 220 UK-listed investment companies valued at £110bn reveals that direct-to-consumer investors control 35% of total market capitalization, surpassing wealth managers' 28% stake. This represents a dramatic reordering of the investor hierarchy, with retail clients displacing wealth management as the second-most significant shareholder class after institutions at 29%. The findings come from a report titled "Investment Trusts: Changing Ownership Trends" produced by Richard Davies Investor Relations and Warhorse Partners, which examined ownership patterns across the sector.
The growth of retail participation reflects sustained momentum from the pandemic-era surge in DIY investing platforms. Retail investors contributed £6.7bn to investment trusts in 2019, expanding their total asset base to £38bn. During the same period, wealth managers reduced their trust holdings by £1.8bn, with several major firms including Investec Wealth and Brewin Dolphin becoming consistent net sellers. This reallocation has prompted investment company boards to fundamentally restructure their marketing and investor communications strategies to engage an increasingly consequential DIY cohort.
However, evidence suggests the DIY-to-advised transition may be accelerating as portfolios mature and complexity increases. Among affluent self-directed investors holding at least $250,000 in assets, 47% anticipate working with a financial advisor within the next 12 months, according to recent research from JD Power. Notably, this propensity rises to 45% among those with children, compared to just 22% among childless DIY investors, pointing to life-stage transitions as a driver. Younger self-directed investors aged 40 or under with $250,000+ assets showed particularly pronounced interest in professional guidance, with 19% "definitely likely" to seek an advisor in 2026—nearly doubling the 10% recorded in 2025. The 40-49 age cohort demonstrated even more dramatic acceleration, with advisor interest tripling from 6% in 2024 to 18% in 2025.
Mike Foy, managing director of wealth intelligence at JD Power, attributed part of the shift to market volatility and noted that "brands that can attract these clients when they are new to investing and offer them flexible options for both digital and human advice as their needs become more complex will be the big winners going forward." The research suggests market volatility may be accelerating advisory demand, though this effect was not explicitly quantified in the survey. Fintech platforms are simultaneously gaining competitive ground on traditional banks in the DIY segment, winning clients on innovation metrics while narrowing traditional trust advantages held by legacy financial institutions. This dual dynamic—growing DIY ownership of investment trusts coupled with increased advisor-seeking among wealthy self-directed investors—points to an emerging opportunity for firms capable of bridging self-directed and advisory services through hybrid models.
The growth of retail participation reflects sustained momentum from the pandemic-era surge in DIY investing platforms. Retail investors contributed £6.7bn to investment trusts in 2019, expanding their total asset base to £38bn. During the same period, wealth managers reduced their trust holdings by £1.8bn, with several major firms including Investec Wealth and Brewin Dolphin becoming consistent net sellers. This reallocation has prompted investment company boards to fundamentally restructure their marketing and investor communications strategies to engage an increasingly consequential DIY cohort.
However, evidence suggests the DIY-to-advised transition may be accelerating as portfolios mature and complexity increases. Among affluent self-directed investors holding at least $250,000 in assets, 47% anticipate working with a financial advisor within the next 12 months, according to recent research from JD Power. Notably, this propensity rises to 45% among those with children, compared to just 22% among childless DIY investors, pointing to life-stage transitions as a driver. Younger self-directed investors aged 40 or under with $250,000+ assets showed particularly pronounced interest in professional guidance, with 19% "definitely likely" to seek an advisor in 2026—nearly doubling the 10% recorded in 2025. The 40-49 age cohort demonstrated even more dramatic acceleration, with advisor interest tripling from 6% in 2024 to 18% in 2025.
Mike Foy, managing director of wealth intelligence at JD Power, attributed part of the shift to market volatility and noted that "brands that can attract these clients when they are new to investing and offer them flexible options for both digital and human advice as their needs become more complex will be the big winners going forward." The research suggests market volatility may be accelerating advisory demand, though this effect was not explicitly quantified in the survey. Fintech platforms are simultaneously gaining competitive ground on traditional banks in the DIY segment, winning clients on innovation metrics while narrowing traditional trust advantages held by legacy financial institutions. This dual dynamic—growing DIY ownership of investment trusts coupled with increased advisor-seeking among wealthy self-directed investors—points to an emerging opportunity for firms capable of bridging self-directed and advisory services through hybrid models.
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