AIC sector review
AIC overhauls investment company sectors following industry review.
The Association of Investment Companies (AIC) has revamped its investment company sectors following an industry-wide consultation. Its new list of sectors and constituents comprises 13 new sectors, 15 renamed sectors and 31 sectors which are unchanged. The sector reorganisation takes effect from Tuesday 28 May 2019.
The changes follow a year-long review of investment company sectors which was overseen by the AIC’s independent statistics committee of brokers, research analysts and data providers. The AIC conducted the review in consultation with its members to ensure its investment company sectors were as clear and helpful as possible for investors.
Several of the new sectors reflect the greater numbers of investment companies investing in alternative assets. The amount of money invested by investment companies in alternative assets has grown by 92% over the past five years, rising from £39.5 billion in 2014 to £75.9 billion in 2019.
For example, Sector Specialist: Debt has been separated into three new sectors, Debt – Direct Lending, Debt – Loans & Bonds and Debt – Structured Finance. Similarly, companies in the Property Direct – UK and Property Specialist sectors have been reclassified as Property – UK Commercial, Property – UK Healthcare, Property – UK Residential or Property – Debt.
To accompany the revised list of sectors, the AIC has issued new sector descriptions so investors can easily understand what each sector invests in.
Ian Sayers, Chief Executive of the Association of Investment Companies (AIC), said: “We undertook this review to ensure that investment company sectors accurately reflect the shape of the industry today. Recent years have seen significant growth in investment companies investing in alternative assets, such as property, debt and infrastructure and the emergence of new asset classes such as leasing and royalties. Our new sectors allow investors to find and compare companies with similar characteristics easily. I’m confident the new sectors will play a useful role in helping inform investors’ decisions.”
New sectors
|
New sector |
Sector description |
|---|---|
|
Asia Pacific |
Invests in the shares of larger quoted Asia Pacific companies. |
|
Asia Pacific Income |
Invests in the shares of larger quoted Asia Pacific companies, or high yielding securities, for a high income. |
|
Asia Pacific Smaller Companies |
Invests in the shares of smaller quoted Asia Pacific companies. |
|
Debt – Direct Lending |
Invests in direct lending. |
|
Debt – Loans & Bonds |
Invests in general loans and bonds. |
|
Debt – Structured Finance |
Invests in structured finance. |
|
Growth Capital |
Invests in unquoted shares. Generally takes non-controlling stakes in early to maturing companies. |
|
Property – Debt |
Invests in property debt. |
|
Property – UK Commercial |
Invests in UK commercial property. |
|
Property – UK Healthcare |
Invests in UK healthcare property. |
|
Property – UK Residential |
Invests in UK residential property. |
|
Royalties |
Invests in royalties. |
|
Technology & Media |
Invests in technology and media. |
Renamed sectors
|
New sector |
Old sector |
|---|---|
|
Biotechnology & Healthcare |
Sector Specialist: Biotechnology & Healthcare |
|
Commodities & Natural Resources |
Sector Specialist: Commodities & Natural Resources |
|
Country Specialist: Asia Pacific ex Japan |
Country Specialists: Asia Pacific |
|
Country Specialist: Europe ex UK |
Country Specialists: Europe |
|
Environmental |
Sector Specialist: Environmental |
|
Financials |
Sector Specialist: Financials |
|
Forestry & Timber |
Sector Specialist: Forestry & Timber |
|
Infrastructure |
Sector Specialist: Infrastructure |
|
Insurance & Reinsurance Strategies |
Sector Specialist: Insurance & Reinsurance Strategies |
|
Leasing |
Sector Specialist: Leasing |
|
Liquidity Funds |
Sector Specialist: Liquidity Funds |
|
Property – Europe |
Property Direct – Europe |
|
Property – Rest of World |
Property Direct – Asia Pacific |
|
Renewable Energy Infrastructure |
Sector Specialist: Infrastructure – Renewable Energy |
|
Utilities |
Sector Specialist: Utilities |
Unchanged sectors
|
Country Specialist: Latin America |
Private Equity |
|
Europe |
Property Securities |
|
European Emerging Markets |
UK All Companies |
|
European Smaller Companies |
UK Equity & Bond Income |
|
Flexible Investment |
UK Equity Income |
|
Global |
UK Smaller Companies |
|
Global Emerging Markets |
VCT AIM Quoted |
|
Global Equity Income |
VCT Generalist |
|
Global High Income |
VCT Generalist Pre Qualifying |
|
Global Smaller Companies |
VCT Specialist: Environmental |
|
Hedge Funds |
VCT Specialist: Healthcare & Biotechnology |
|
Japan |
VCT Specialist: Healthcare & Biotechnology Pre Qualifying |
|
Japanese Smaller Companies |
VCT Specialist: Infrastructure |
|
Latin America |
VCT Specialist: Media, Leisure & Events |
|
North America |
VCT Specialist: Technology |
|
North American Smaller Companies |
Click here to see all sector descriptions.
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Notes
- 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 359 members and the industry has total assets of approximately £189 billion.
- 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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