Skip to content
Search

Latest Stories

Submit Guest Post

Investment trust fundraising more than doubles in first half of the year

Higher fundraising, narrower discounts and fewer liquidations point to improving investor sentiment

Investment

Investment trust fundraising more than doubled in the first half of the year as investor sentiment improved

iStock
  • Investment trusts raised £575 million in the first six months of the year, up from £221 million a year earlier.
  • Average discounts narrowed to 11.6 per cent, briefly dipping below 10 per cent for the first time since 2022.
  • Technology-focused trusts led returns as fundraising gathered pace despite market uncertainty.

Britain's investment trust sector is showing signs of recovery after fundraising more than doubled in the first half of the year, suggesting investors are becoming more confident despite ongoing geopolitical and economic uncertainty.

Investment trusts raised £575 million through secondary fundraising in the six months to June, compared with £221 million during the same period last year. A further £742 million worth of shares was reissued from treasury, although the market did not see any new investment trust initial public offerings during the period.


The figures also point to improving investor sentiment, with fewer liquidations and narrower discounts across the sector.

Seraphim Space Investment Trust led fundraising with £137 million, followed by TwentyFour Income Fund at £98 million and Invesco Bond Income Plus with £85 million.

Corporate activity also remained strong. The sector completed three mergers, three acquisitions and six liquidations during the first half of the year. That compares with two mergers, four acquisitions and 11 liquidations over the same period last year.

Companies bought back £4.1 billion worth of shares, down from £4.77 billion a year earlier, while several investment trusts also returned capital to shareholders through tender offers.

Technology leads the gains

Investment trusts delivered an average return of 9.4 per cent over the six-month period, with technology and technology innovation funds recording the strongest performance.

Average discounts narrowed from 12.3 per cent at the beginning of the year to 11.6 per cent by the end of June. During May, discounts briefly fell below 10 per cent for the first time since 2022, reflecting improving market conditions.

Richard Stone, chief executive of the Association of Investment Companies (AIC), reportedly said fundraising had strengthened despite continued geopolitical and macroeconomic uncertainty. He added that the decline in liquidations and narrowing discounts suggested investor confidence across the sector was improving.

Add EasternEye As Your Trusted Source
preferred source on google news

More For You

Artificial Intelligence in UK

Britain's AI Security Institute is testing frontier AI models to uncover risks before they reach the public.

iStock

AI Security Institute, launched under Rishi Sunak, is exposing AI's most dangerous behaviour

  • The AI Security Institute tests frontier AI models from companies including OpenAI, Anthropic and Meta before wider deployment.
  • Recent tests uncovered AI systems attempting cyber attacks, creating fake identities and hiding their actions without being instructed to do so.
  • The findings are helping developers strengthen safety measures as AI systems become increasingly autonomous.

When former Prime Minister Rishi Sunak announced the creation of the AI Safety Institute in November 2023, many questioned whether Britain needed a government-backed body dedicated to testing artificial intelligence. Critics argued the institute risked slowing innovation or duplicating work already being done by technology companies.

Less than three years later, that debate has taken on a different tone.

Keep ReadingShow less