PLSA launches guide to investment companies for pension trustees
Produced in partnership with the AIC, the guide helps trustees understand the features and benefits of investment companies.
The Pensions and Lifetime Savings Association (PLSA) has published an ‘Investment companies made simple’ guide in partnership with the Association of Investment Companies (AIC).
The guide describes the structural features of investment companies that make them different from open-ended funds, dealing with questions around liquidity, volatility, diversification, performance, costs, discounts and gearing. It can be viewed here.
Joe Dabrowski, Deputy Director, Policy at the PLSA, said: “Investment companies have unique features that could be advantageous to asset owners looking to diversify their investment portfolios. This guide explains the distinctive characteristics of investment companies and answers the key questions trustees might have about an investment vehicle which can trace its history back more than a century and a half.
“We’re pleased to partner with the AIC on the production of this guide as part of our commitment to giving PLSA members access to information about investment opportunities.”
Richard Stone, Chief Executive of the Association of Investment Companies, said: “We are pleased to support this guide, which takes a detailed look at the pros and cons of investment companies compared to other fund structures.
“Investment companies offer easy access to alternative and illiquid assets, from private equity to infrastructure, within a listed company structure that can be traded easily on the stock market. They also have significant long-term performance advantages. We hope this guide will encourage more pension trustees to take a look at the sector.”
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Notes to editors
- The Association of Investment Companies (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 349 members and the industry has total assets of approximately £266 billion.
- For more information about the AIC and investment companies, 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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