Closed-end asset growth outstrips open-ended peers

Numis report

Kathleen Gallagher
clock • 2 min read
Assets in investment trust have grown at about 15.1% per year over the past three years
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Assets in investment trust have grown at about 15.1% per year over the past three years

Assets in investment trust have grown at about 15.1% per year over the past three years compared to just 10.7% for UK open-ended funds, according to new research from Numis.

Last year investment companies had a record level of fundraising with a total of £16.2bn capital raised, almost doubling that raised in 2020 (£8.4bn). "We believe investors can take some comfort that record issuance may not be a ‘bubble' given that it has been dominated by secondary issuance (75% of total issuance) by existing funds that are delivering on expectations, rather than being dominated by more speculative IPOs," the report said. While closed-ended funds have been thriving and tapping into the demand for more alternative income, open-ended funds have had high-profile issues,...

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