Investment company assets passed the £200 billion milestone at the end of last month, hitting a record £200.3 billion on 31 July.

According to information from the Association of Investment Companies (AIC) assets have doubled in the last six and a half years, having reached £100 billion in January 2013.

The AIC said that nearly half of the growth over that period (46%) has come from investment companies investing in alternative assets, which had £80.3 billion under management on 31 July 2019, up from £34.7 billion on 31 January 2013.

Ian Sayers, Chief Executive of the Association of Investment Companies (AIC), said: “It’s good news that the investment company industry is growing strongly, reaching a record £200 billion of assets at the end of July. This growth demonstrates the adaptability of investment companies, which have been helping investors meet their financial needs for more than 150 years.  It reflects growth in mainstream investment companies which are investing in cutting-edge opportunities such as technology, healthcare, frontier markets and venture capital.

“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.

“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.”

Growth of assets

The AIC was formed in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment.