Investment trusts see fundraising surge

The investment trust sector has raised £2.7bn in the first half of this year helped by investors’ hunt for yield, according to the Association of Investment Companies (AIC).

Almost half of the amount raised, £1.3bn, was through eight new issues on the London Stock Exchange, compared with the £296m generated from four new issues in the same timeframe last year.

Ian Sayers, AIC director general, said the rise was a combination of positive market moves and investors’ enthusiasm for yield.

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“The rise in market sentiment has played an important role and the quest for income has dominated the new launch market, with launches generally focussing on specialist and innovative ways to generate income,” he said.

“The demand for income is also reflected in the wider investment company market, where approximately a quarter of the sector is currently trading on a premium, largely among income focussed companies.”