Near-30% rise in new investment trust money offset by £1.9bn outflow

There has been a near-30% rise in new investment trust money with seven vehicles being launched in 2012, however £1.9 billion has left the sector.

According to an analysis by Winterflood Securities, the number of trusts brought to market this year exceeded 2011's total.

'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.

However crunching the numbers on money exiting the sector, Winterfloods said £912.6 million had left 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.