Why advisers use investment companies

• Four advisers discuss how they use investment companies
• Watch ‘Why advisers use investment trusts’ video here

The Association of Investment Companies (AIC) has released an educational video featuring financial adviser views on their use of investment companies (investment trusts).

The video, available at theaic.co.uk, explains through interviews with advisers why they use investment companies, benefits of the investment company structure and their suitability for a wide range of clients.

The video follows recent lang cat research, commissioned by the AIC, which found that financial advisers are overcoming barriers to using investment companies and incorporating them into their client processes. For all the results of this research click here.

The video also complements the AIC’s upcoming seminar series, ‘Investment trusts in financial planning’. This series of free seminars in November has been designed to familiarise financial planners with investment companies and encourage their wider use. Full details of the events, which are open to financial advisers and other investment professionals, are available here.

Nick Britton, Head of Intermediary Communications (AIC), said: “It’s good to see financial advisers overcoming challenges and barriers to using investment companies, but there is still some way to go.

“As this new video shows, advisers with experience of investment companies are likely to recognise compelling benefits to the structure, including income advantages, strong performance and greater transparency.

“However, investment companies may still not be an obvious choice for advisers, and we’re aware that many still struggle to see where they fit in with clients. We hope this video demonstrates to the wider adviser community that investment companies offer a variety of benefits and should be considered on a level playing field with open-ended funds. The video is just part of our continued campaign to increase the use and awareness of investment companies amongst financial advisers, and we encourage those who want to learn more to take advantage of our free training.”   

The AIC’s website contains full details of online and face-to-face training for financial advisers on investment companies, available free of charge and accredited by professional bodies.

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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 362 members and the industry has total assets of approximately £198 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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