Total assets under management (AUM) in closed-end UK investment companies, including trusts, reached a record high of £141bn at the end of June, according to new figures.
The Association of Investment Companies (AIC) today reported that nearly £5bn of assets were added to the total during June.
As well as being up from £134bn in June 2015, the amount is almost double the total recorded by the AIC at the end of June 2006.
The global sector was the largest area of investment at the end of last month, with total AUM of £22bn.
The property sector was the next largest, with £13bn in assets. Private equity also has AUM of £13bn, while the UK equity income sector was the fourth largest, with £10bn.
“Although it has been a challenging start to the year, it is reassuring to see industry total assets standing at an all-time high,” said Ian Sayers, chief executive of the AIC.
He told City A.M. it had been a difficult year for several reasons, including stock market troubles, uncertainty around Brexit and fewer companies entering the sector through initial public offerings (IPOs).
Sayers added: “The rise of ‘alternative assets’, such as property and infrastructure illustrates not just the demand for yield, but also the suitability of the closed-ended structure when it comes to investing in illiquid assets.
“This structure, which allows managers to take a long-term view without having to deal with the problems of large scale redemptions, also means that the sector is well-placed to weather any challenges that lie ahead.”