AJ Bell has reported a 436% increase in the number of adviser gilt purchases through its Investcentre gilt dealing service.

The number of adviser firms using the gilt service increased by 83% last year, with a 223% increase in the number of advised customer accounts using the service to buy gilts during the same period.

AJ Bell Investcentre introduced an online gilt dealing service for advisers in February last year, making it easier for advisers to recommend gilts to clients.

The investment platform has also reported a 31% increase in gilt purchases among advisers in January this year, compared with the previous month.

AJ Bell suggested this may reflect the period of increased gilt yields as investors reacted to several factors including the policies announced in Rachel Reeves’ October Budget, and a renewed sense of inflationary pressures ahead of Donald Trump’s return to the White House.

“The continuing trend among advisers towards investing in government bonds showed no sign of abating in 2024, with a significant uptick in adviser gilt dealing across the platform and notably via our online gilt dealing service,” commented AJ Bell Investcentre product director, Mark Rendle.

“Advisers are clearly adapting to meet the needs of clients in the current economic backdrop, with government borrowing up significantly by recent historic standards ever since the Truss-Kwarteng mini-Budget in the autumn of 2022, and increasing again at the start of this year amid renewed concerns around inflation.”

Rendle added: “We recognise how crucial it is for advisers to have the tools they need in the palms of their hands, allowing them to react quickly to the needs of clients at times of sharp and sudden changes to financial markets and economic conditions.”

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