View the article online at http://citywire.co.uk/new-model-adviser/article/a646466
Investment trusts enjoy 30% boost to inflows over 2012
by Sarah Miloudi on Dec 18, 2012 at 16:27
Nearly 30% more money flowed into investment trusts in 2012 than last year, according to analysis from Winterflood Securities.
'Whilst the environment for fundraising remains challenging, 2012 has been a better year than last year,' said the Association of Investment Companies (AIC), in response to Winterfloods' findings.
Market maker Winterfloods, which has a specialist investment company research team headed up by Simon Elliott (pictured), said investment companies attracted roughly £3.2 billion over the year versus last year's £2.5 billion, a rise of 28%.
Seven new investment companies were launched, including the Battle Against Cancer Investment Trust and the Starwood European Real Estate Fund, the biggest launch of the year after netting £228 million at its placing. This is compared to six trusts launched in 2011.
Winterfloods said £912.6 million had left investment trusts through share buy backs and £987.7 million through tender offers, looking at 12-month data through to the end of November.
Investors keen on the trust sector continue to look for income, a theme not expected to disappear any time soon.
Winterfloods found income dominated the bulk of secondary market issuance throughout 2012, with infrastructure proving a hot specialist sector.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
Alastair Mundy met Citywire's Daniel Grote at the London Stock Exchange Studios for a detailed interview about the Investec Cautious Managed fund.