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Fastest growing investment company launches over last five years

19 July 2017

Twenty fastest growing launches by total assets have increased by more than 134%.

Research from the Association of Investment Companies (AIC) using Morningstar data has revealed the 20 fastest growing member investment company launches over the last five years. These 20 companies have increased their total assets under management (AUM) by at least 134% since their launch in the last five years.  

High yielding alternative assets dominate

In total 77 investment companies were launched in the last five years to the end of June and 70% of these invest in alternative assets.  All the top 20 fastest growing investment company launches are invested in alternative assets.

Demand for income has clearly had a significant impact on the growth of these launches, with all but one of these 20 companies yielding 4% or more. Interestingly, and clearly linked to the demand for yield, only four of these companies are currently on a discount.

Property Specialist sector

The Property Specialist sector comes out on top, with four of the top five fastest growing investment company launches from this sector.

Tritax Big Box REIT has increased in size the most, with an impressive 979% increase in assets under management since it was launched in December 2013 and a share price total return of 64.39% from launch to the end of June 2017.

The next three investment companies with the highest percentage increase in assets under management from the Property Specialist sector are Empiric Student Property, GCP Student Living and Target Healthcare REIT which have each increased their AUM by 650%, 631% and 522% respectively.

Property investment companies have seen a boost in their popularity over the last year following the problems open-ended funds suffered after the Brexit vote, with the Property Direct – UK sector being the most popular sector for adviser purchases for the last half of 2016 and the second most popular sector for Q1 2017.

Sector Specialist: Infrastructure – Renewable Energy

Four of the five new member launches in the Sector Specialist: Infrastructure – Renewable Energy sector in the last five years are included in the list of twenty investment companies with the highest percentage increase in AUM. These include: NextEnergy Solar, who have increased their AUM by 599% since their launch in 2014; Bluefield Solar Income Fund, 333% increase; Greencoat UK Wind, 252% increase and Renewables Infrastructure Group, 217%.

Annabel Brodie-Smith, Communications Director, Association of Investment Companies said: “The investment company industry’s assets under management reached a new record high at the end of May 2017, hitting almost £168bn.  It’s significant that all the fastest growing launches over the last five years are in higher yielding alternative assets where there has been strong investor demand.

“The closed-ended structure of investment companies is particularly suited to illiquid alternative assets. This has been emphasised by the problems suffered by the open-ended property funds after the Brexit vote. Investment companies are listed companies on the stock exchange so investors can always buy and sell shares freely. Investment company managers do not have to manage inflows and outflows and can take a long-term view of their portfolios, without being constrained by the illiquid nature of the asset class.”

Top 20 investment companies with largest % total asset increase since launch in the last five years

Company

AIC sector

Launch date

Total assets at launch (£m)

Total assets at 30/06/2017 (£m)

Total assets % increase

SPTR since launch to 30/06/2017 (%)

Dividend yield as at 30/06/2017 (%)

Discount / Premium as at 30/06/2017 (%)

Tritax Big Box REIT

Property Specialist

09/12/2013

200.00

2158.20

979.10

64.39

4.40

11.90

Empiric Student Property

Property Specialist

30/06/2014

85.00

637.30

649.78

27.65

5.50

4.80

GCP Student Living Property Specialist 20/05/2013 93.00 680.00 631.18 65.55 4.00 6.20

NextEnergy Solar

Sector Specialist: Infrastructure - Renewable Energy

25/04/2014

85.60

598.10

598.71

32.83

5.70

8.40

GCP Student Living

Property Specialist

20/05/2013

70.00

460.00

557.14

65.55

4.00

6.20

Target Healthcare REIT

Property Specialist

07/03/2013

45.60

283.50

521.71

41.03

5.30

17.80

Sequoia Economic Infrastructure Income

Sector Specialist: Infrastructure

03/03/2015

150.00

756.10

404.03

16.18

5.40

10.50

Qannas Investments

Private Equity

06/03/2012

11.60

50.80

337.18

61.68

0.00

3.80

Bluefield Solar Income Fund

Sector Specialist: Infrastructure - Renewable Energy

12/07/2013

130.00

562.30

332.50

41.41

6.30

11.40

P2P Global Investments

Sector Specialist: Debt

30/05/2014

200.00

822.80

311.39

-2.99

4.80

-11.60

DP Aircraft I

Sector Specialist: Leasing

04/10/2013

71.00

281.30

296.23

79.04

8.20

10.60

Fair Oaks Income 2017

Sector Specialist: Debt

12/06/2014

68.30

253.40

271.15

88.05

12.80

6.90

Apax Global Alpha

Private Equity

15/06/2015

218.20

777.10

256.14

32.45

5.30

-3.90

Kennedy Wilson Europe Real Estate

Property Direct - Europe

28/02/2014

910.00

3209.60

252.70

13.87

4.30

-4.70

Greencoat UK Wind

Sector Specialist: Infrastructure - Renewable Energy

27/03/2013

260.00

914.40

251.67

46.84

5.40

10.40

Renewables Infrastructure Group

Sector Specialist: Infrastructure - Renewable Energy

29/07/2013

300.00

950.80

216.93

36.09

5.8

9.10

Honeycomb

Sector Specialist: Debt

23/12/2015

100.00

303.20

203.15

25.69

8.40

15.50

TwentyFour Income

Sector Specialist: Debt

06/03/2013

150.00

451.30

200.88

45.38

5.80

5.00

Blue Capital Alternative Income

Sector Specialist: Insurance & Reinsurance Strategies

06/12/2012

60.80

151.80

149.52

70.02

6.30

-5.30

SQN Asset Finance Income

Sector Specialist: Leasing

14/07/2014

150.00

354.20

136.13

15.43

6.90

5.50

Amedeo Air Four Plus

Sector Specialist: Leasing

13/05/2015

202.00

473.70

134.52

13.32

7.90

32.50

-Ends-

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Notes

  1. Dividend yield data to 30 June 2017.
  2. Total assets under management figures source: AIC using Morningstar data as at 30 June 2017.
  3. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment.  Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs.  The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 349 members and the industry has total assets of approximately £167 billion.
  4. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.

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Annabel Brodie-Smith
Communications Director
Tel: 020 7282 5580
annabel.brodie-smith@theaic.co.uk
@annabelbrodies
@aicpress

Laura Thomas
PR & Marketing Executive
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Elmley de la Cour
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