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Investment companies reach record £200 billion

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12 August 2019

Industry assets double in six and a half years.

The investment company industry’s assets have passed the £200 billion milestone for the first time, reaching a record £200.3 billion on 31 July 2019.

Assets have doubled in the last six and a half years, having reached £100 billion at the end of January 2013. Nearly half of the growth over that period (46%) has come from investment companies investing in alternative assets, which had £80.3 billion under management on 31 July 2019, up from £34.7 billion on 31 January 2013 (growth of 132%).

Ian Sayers, Chief Executive of the Association of Investment Companies (AIC), said: “It’s good news that the investment company industry is growing strongly, reaching a record £200 billion of assets at the end of July. This growth demonstrates the adaptability of investment companies, which have been helping investors meet their financial needs for more than 150 years.  It reflects growth in mainstream investment companies which are investing in cutting-edge opportunities such as technology, healthcare, frontier markets and venture capital.

“As investment companies are the natural home for illiquid assets, it is not surprising that a significant part of this growth has been in the alternative sectors, which are often invested in assets that are harder to sell such as property and infrastructure.

“Investment companies’ income advantages have also come to the fore in the current low interest rate environment. Many investment companies have increased their dividends for decades, making them highly sought after in recent years.”

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Notes

  1. 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 359 members and the industry has total assets of approximately £200.3 billion.
  2. 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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