Net fundraising hit £5.24bn in 2015, which is 56% higher than the previous record set in 2007. On the secondary market £4.81bn was raised, compared with £3.61bn last year and £3.85bn in 2013. Meanwhile, £2.67bn was raised from IPOs.
Industry assets peaked at £137bn in May -the highest ever- before settling at £133.6bn at 30 November. That same figure was £122bn at the end of last year.
“Clearly the demand for income is dictating much of the issuance activity we are seeing,”said Ian Sayers, chief executive of the AIC. It’s also noteworthy that money leaving the sector was at its lowest in twelve years.”
The average investment company discount hit a historic record low this year as well, reaching 2.4% in October. “With all this demand it’s not surprising that discounts continue to trade at historic lows, and some investment company boards whose shares are in demand will be considering how they manage the discount if sentiment turns,” said Sayers.
He continued: “Advisers are also paying closer attention to the sector, as the second quarter saw a record high of adviser and wealth manager investment company purchases on platforms.”
There were around 17 new investment company launches in 2015, and new issues tended to be in higher yielding sectors such as property and debt, according o the AIC. Woodford Patient Capital, in the UK All Companies Sector was the largest issue this year. Raising close to £800m, it was also the largest ever UK domiciled investment company launch.
P2P Global Investments raised the most on the secondary market; £671m, followed by Renewables Infrastructure Group with £316m. Kennedy Wilson Europe Real Estate raised £300m, while Empiric Student Property issued £246m of shares on the secondary market and Tritax Big Box raised £229m.
