Baroness Bowles: Investment companies “a perfect match for today’s investment objectives”
The AIC has launched a new report on investment companies at a parliamentary reception.
A parliamentary reception is to be held in the House of Commons today, hosted by Baroness Bowles on behalf of the Association of Investment Companies (AIC).
The reception is being used to launch a new AIC report, ‘Investment companies: bridging the gap between investors and markets’. With a foreword by Dame Julia Hoggett, CEO of London Stock Exchange, the report highlights the billions of pounds that investment companies invest in renewable energy infrastructure, UK smaller companies and fast-growing private companies, as well as the benefits they bring individual savers.
Baroness Bowles of Berkhamsted said: “Investment companies are a perfect match for today’s investment objectives. They offer investors diversified portfolios that can be traded quickly on the stock exchange, without the underlying assets having to be cashed in. That means they can provide stable, long-term investment, perfect for infrastructure, just what the economy needs and ideal for pensions and ISAs. Many investment companies invest in local and social infrastructure, renewable energy and growth companies – giving people the ability to invest in things going on in their local economies that they can see and will make a difference.”
Investment companies are a perfect match for today’s investment objectives. They offer investors diversified portfolios that can be traded quickly on the stock exchange, without the underlying assets having to be cashed in. That means they can provide stable, long-term investment, perfect for infrastructure, just what the economy needs and ideal for pensions and ISAs. Many investment companies invest in local and social infrastructure, renewable energy and growth companies – giving people the ability to invest in things going on in their local economies that they can see and will make a difference.
Baroness Bowles
Julia Hoggett, CEO of London Stock Exchange, said: “London-listed investment companies can deliver for both investors and investee companies. They are open to all: from institutions to private individuals. Their investors benefit from expert active asset management, the stewardship of an independent board, and the right to vote on key decisions. Meanwhile, investees can be reassured that investment companies are long-term investors. Unlike other fund structures, they have no need to sell assets when their investors wish to exit.”
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Our report shows that investment companies are a UK success story. With their origins in Victorian London and Scotland, they have become major investors in key growth areas of the UK economy – from green energy to fast-growing private companies. But they can do even more, given the right legal and regulatory environment. We will continue working with government to ensure that investment companies can continue to deliver the best outcomes for investors and the wider economy long into the future.”
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Notes to editors
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 301 members and the industry has total assets of approximately £258 billion.
- For more information about the AIC and investment trusts, visit the AIC’s website.
- 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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