Fastest growing investment company launches over last five years
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
- Dividend yield data to 30 June 2017.
- Total assets under management figures source: AIC using Morningstar data as at 30 June 2017.
- 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.
- 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.
