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Record-breaking month for investment company fundraising

4 November 2019

Investment companies raised £1.28b in October 2019, the highest level of secondary fundraising ever seen in a single calendar month according to new data from the Association of Investment Companies (AIC).

A total of £1.28 billion was raised in October through secondary fundraisings by investment companies, marking an all-time record for the investment company industry.

Fundraisings by existing investment companies reached £1.28b in October 2019, the highest level of secondary fundraising ever seen in a single calendar month according to new data from the Association of Investment Companies (AIC). The second-highest month for fundraising by existing investment companies was in June this year (£1.18b).

Companies in the Infrastructure sector led the way, raising £405m. Next were the Renewable Energy Infrastructure and Royalties sectors, which raised £380m and £231m respectively.

Music royalties-focused Hipgnosis Songs Fund was the company that raised the most in October with £231m, followed by Renewables Infrastructure Group (TRIG) raising £228m and 3i Infrastructure raising £223m.

Ian Sayers, Chief Executive of the Association of Investment Companies (AIC), said: “This strong month for fundraising confirms that investors want what investment companies can provide. The closed-ended structure can offer exposure to a wide range of assets, including illiquid assets, without worries about redemptions leading to harmful short-term decisions. This makes it highly suitable for investment in infrastructure and renewable energy assets, for example, which formed a big part of this month’s record fundraising.

“At this very uncertain time, it’s encouraging to see investors putting their faith in investment companies, which have been around for over 150 years and survived multiple market crashes and shocks. No-one knows what the future may hold, but the investment company structure gives boards and managers the freedom to make decisions in shareholders’ best long-term interests, and steer companies through turbulent markets.”

Company

Amount raised (£m)

AIC sector

Hipgnosis Songs Fund

231

Royalties

Renewables Infrastructure Group

227.55

Renewable Energy Infrastructure

3i Infrastructure

222.75

Infrastructure

International Public Partnerships

116.50

Infrastructure

Supermarket Income REIT

100

Property – UK Commercial

SDCL Energy Efficiency Income

100

Renewable Energy Infrastructure

Investment companies raising £100 million or above in October 2019.

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Notes

  1. £1.28 billion was raised by investment company secondary issues excluding VCTs in October 2019. The second-highest amount raised in a month was £1.18 billion in June 2019.
  2. 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 362 members and the industry has total assets of approximately £198 billion.
  3. 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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