New AIC report reveals who owns investment companies
The AIC has released a comprehensive report on the ownership of investment companies.
- Read the report: ‘The ownership of investment companies’
The Association of Investment Companies (AIC) has today released a comprehensive report on the ownership of investment companies.
The report shows that institutions own 50% of investment company shares by value, or £89 billion of the holdings that were analysed. Wealth managers hold 25% (£44 billion), private investors 23% (£41 billion) and adviser platforms 2% (£4 billion)1.
Institutions are particularly significant shareholders of alternative asset investment companies, with a share of 70%. Private investors have a larger stake in investment companies that invest in equities, making up one-third (33%) of the shareholder base of these companies. Wealth managers make up more of the shareholder base of equity investment companies (28%) than they do of alternative investment companies (20%).
The AIC’s analysis is based on shareholder data from Argus Vickers and covers £177 billion of shareholdings, representing 87% of the industry’s total market capitalisation excluding VCTs at the end of December 2023.
Changes since 2022
A year-on-year comparison reveals that institutions marginally increased their share of investment companies’ shareholder base, from 49% at the end of December 2022 to 50% a year later. Wealth managers’ share declined by 1 percentage point, from 26% to 25%.
The shift from wealth managers to institutions is largely accounted for by movements in the shareholder base of alternative investment companies. During 2023, wealth managers’ share of these companies declined from 23% to 20%, while institutions’ share saw a corresponding increase, from 67% to 70%.
AIC comment
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “This report is the most comprehensive analysis ever of investment company ownership. It reveals that our shareholder base is as diverse as investment companies themselves, from the largest institutions and wealth managers all the way through to financial advisers and private investors holding shares on platforms.
“This has always been the case, from the days when investment companies were invented in 1868 to provide the investor of moderate means with the same advantages as large, sophisticated investors. Investment companies are a UK success story, giving investors access to a wide range of global opportunities and channelling capital into the drivers of future economic growth, such as infrastructure and the transition to net zero.
“We will update this analysis regularly to follow trends in the industry’s shareholder base and draw out more insights from the data.”
“This report is the most comprehensive analysis ever of investment company ownership. It reveals that our shareholder base is as diverse as investment companies themselves, from the largest institutions and wealth managers all the way through to financial advisers and private investors holding shares on platforms."
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
Largest investors
The report lists the 20 largest institutional investors in investment companies, the 20 largest wealth managers, and the most significant retail and adviser platforms.
Among the top 20 institutional investors are asset managers such as BlackRock, Columbia Threadneedle, Vanguard, Schroders and Fidelity, as well as specialist investors such as City of London Investment Management, Allspring Global Investments and 1607 Capital Partners which are known for investing in investment companies on wider discounts.
The top wealth managers include Rathbones and Investec, which merged last year, as well as Evelyn Partners, Brewin Dolphin and Quilter Cheviot.
The top three private investor platforms are Hargreaves Lansdown, interactive investor and AJ Bell, which between them account for 15% of the shareholder base of investment companies. The most significant adviser platforms are Transact, Embark and Raymond James.
A full list of the largest investors in investment companies, and their shareholdings, is available in the report.
- ENDS -
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Notes to editors
- Data is based on AIC analysis of Argus Vickers’ database at the end of December 2023 (year-on-year comparisons use data from the end of December 2022). All analysis excludes VCTs. The AIC analysed holdings worth £177 billion, or 87% of the total industry market capitalisation (ex VCTs) at the end of December 2023. The analysis was based on the party making the investment decision, as opposed to the beneficial owner. All percentage breakdowns exclude holdings that were not analysed, but may not sum to 100 due to rounding. All figures in £ exclude holdings that were not analysed. A full methodology is available at the end of the report, ‘The ownership of investment companies’.
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 336 members and the industry has total assets of approximately £267 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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