Bumper Year For UK Investment Company Launches
Wednesday, August 18, 2010

After a relatively quiet 2009, it has been all go in the investment company sector during 2010 with 10 new launches raising a total of GBP1.16bn (USD1.81bn) since the start of the year, according to the Association of Investment Companies (AIC).

This is in comparison to just 4 new launches in the whole of 2009 raising GBP568m. The new launches this year have been in 9 different areas, with a focus on emerging markets and specialist sectors. This is in line with earlier AIC research from the end of 2009, in which fund managers had tipped emerging markets to be the best performing region and resources (including oil) to be the best performing sector in 2010.

So far in 2010 there have been six management group changes. With independent boards of directors responsible for hiring the manager, this illustrates their role in looking after the best interests of shareholders as markets and circumstances evolve. The sector has also seen some three investment companies secure shareholder approval to adjust their investment remit so far in 2010.

Ian Sayers, Director General, Association of Investment Companies (AIC) said:

“Activity in the investment company sector has most definitely picked up in 2010 in comparison with 2009. The most notable change has been an increased number of launches and the innovative nature of their investment strategies. Launches have been within emerging markets countries such as Brazil and more specialist sectors such as biotechnology and infrastructure. JP Morgan have launched the first ever emerging markets income-focused company."

“After a few difficult few years, Boards have been working to ensure that their companies remain as relevant as possible in current market conditions and that they are run by the best managers. It has been an eventful year so far and it will be interesting to see what further developments arise as we enter the remainder of 2010.”