AIC welcomes guides to investing in less liquid assets

The Productive Finance Working Group guides are designed to help defined contribution pension schemes understand the key considerations and risks around investment in less liquid assets.

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The Association of Investment Companies (AIC) has welcomed the publication of the Productive Finance Working Group guides, ‘Investing in Less Liquid Assets: Key Considerations'. The guides are designed to help defined contribution (DC) pension schemes understand the key considerations and risks around investment in less liquid assets over the longer term.

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “It is very encouraging that the guides identify investment companies as a way DC pension schemes can access less liquid assets. Their permanent capital structure makes them particularly suitable for capturing the illiquidity premium offered by alternative assets, such as infrastructure and private equity.

“Investment companies’ fund managers are able take a long-term view when constructing their portfolios. They are not forced sellers because of redemptions – avoiding the risks of liquidity mismatches. For DC pension schemes looking for exposure to less liquid assets, investment companies are the ideal vehicle. They offer strong performance over the long term, robust governance, active oversight of fees and the ability to trade on the stock exchange, making them the natural choice for illiquid assets.”

Visit the AIC’s website to view a list of the AIC’s investment company sectors.

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Notes to editors

  1. 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 vision is for closed-ended investment companies to be considered by every investor. The AIC has 353 members and the industry has total assets of approximately £262 billion.
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