Investment Companies Assets Reach Record £200bn

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Assets under management by the investment company industry have surpassed £200bn for the first time, and have doubled over the past six and a half years. 

The industry’s assets hit a record £200.3bn by the end of July, according to data from the Association of Investment Companies (AIC), doubling in size since hitting £100m in January 2013. 

Almost half of this growth – 46 per cent – came from investment companies putting their money into alternative assets, which reached £80.3bn under management at the end of July. 

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Debt was the alternative asset sector that saw the greatest increase in investment between the start pf 2013 and July 2019, with total assets from investment companies surging 541 per cent to £9.1bn during the period.

Infrastructure and property and property debt saw the next two biggest rises, jumping 142 per cent and 138 per cent respectively. 

Ian Sayers, AIC chief executive, said that the growth “demonstrates the adaptability of investment companies”.

“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,” he continued.

Sayers added: “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.”