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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.