Investment companies can help deliver the government’s growth ambitions
Investment companies help fund UK infrastructure and high-potential sectors and the National Wealth Fund should use them to help finance innovative projects.
Following the release of the government’s ten-year infrastructure plan last week and the industrial strategy paper today, the Association of Investment Companies (AIC) has responded on the role of investment companies in helping deliver the government’s growth ambitions.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Investment companies can help the government deliver its growth ambitions whether that’s funding infrastructure, cutting-edge technology or other high-potential sectors. They already play an important role in funding UK infrastructure projects, with over £17bn of assets invested in UK infrastructure including roads, trains, wind and solar farms. Investment companies invest in a wide range of UK companies from large FTSE companies to smaller quoted companies and ambitious high-growth private companies.
They already play an important role in funding UK infrastructure projects, with over £17bn of assets invested in UK infrastructure including roads, trains, wind and solar farms.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
“The investment company structure could be used to do even more. We believe that investment companies in partnership with the National Wealth Fund could offer a new way for investors to invest in innovative projects. The National Wealth Fund could act as a cornerstone investor in each new investment company, creating a unique combination of public and private capital. Investment companies enable all investors from pension funds to individual private investors to fund infrastructure projects, new technologies or the transition to net zero.
“Investment companies provide a tried-and-tested way of investing in hard-to-sell assets like infrastructure, property, and smaller companies. They provide permanent capital, which allows their fund managers to make long-term investment decisions, whilst investors buy and sell investment company shares on the stock market. They have independent boards of directors and investors can express their views by voting and attending AGMs.”
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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 299 members and the industry has total assets of approximately £263 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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