Income hungry investors pile in

Investment companies have raised £2.7bn in the first half of the year, of which just under half has been through new issues on the London Stock Exchange.

Income hungry investors pile in

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A total eight new issues have attracted investment of £1.3bn, an increase on the £296m from the four new issues during the same period in 2012, according to data provided by the AIC.

New issue activity has already outstripped total levels for both 2011 and 2012, although remains some way off the record level seen in 2007 of £4.7bn.

The table shows new issues in 2013 year-to-date.

 

Month Company Manager Sector Launch assets (£m)
Feb ICG-Longbow Senior Secured UK Property Debt Investments ICG-Longbow Sector Specialist: Debt 105
Mar Greencoat UK Wind Greencoat Capital Sector Specialist: Environmental 260
Mar TwentyFour Income TwentyFour Sector Specialist: Debt 150
March Target Healthcare REIT Target Advisers Property Specialist 49
Jun CVC Credit Partners European Opportunities CVC Credit Partners Sector Specialist: Debt 299
Jun JPMorgan Global Convertibles Income JPMorgan Sector Specialist: Debt 136
Jul Polar Capital Global Financials Polar Capital Sector Specialist: Financials 153
July Bluefield Solar Income Fund Limited Bluefield Partners Sector Specialist: Environmental 130

 

Activity level is attributed to both improved investor sentiment and the demand for income, as launches focus mainly on specialist and innovative ways of generating income.

This search for income is also reflected in new share issuance, which has been especially prevalent in the income-focused sectors.

Demand in the infrastructure sector is also proving strong as a result of the higher than average dividend yields available. International Public Partnerships has issued £46m of share so far this year and John Laing Infrastructure raised £35m.

Last week John Laing revealed it had made a £123m purchase on the secondary market.

 

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