AIC reports funding continuing “in earnest” for 2011

Fund raising for investment trusts has “continued in earnest” in the first quarter of 2011, according to the Association of Investment Companies (AIC).

Trusts have already raised a total of £967m this year, including four newly launched portfolios, which have drawn £451m from investors.

These launches were the £309m NB Global Floating Rate Income, £50m Duet Real Estate Finance, £50m Diverse Income and £42m Henderson International Income trusts.

Additionally, 10 investment companies have raised £420m through the issuance of more than £5m of new shares: Cayenne, Eastern European, Edinburgh Dragon, Fidelity China Special Situations, HarbourVest Senior Loans Europe, Infrastructure India, JPMorgan American, JPMorgan Global Emerging Markets Income, MedicX Group and Origo Partners.

An additional £96.3m is thought to have been raised through the issuance of share capital worth less than £5m.

Approximately £268m has left the sector following the departure of the Dexion Commodities, CMA Global Hedge, Castle Asia Alternative, Gartmore Irish Growth and Tapestry trusts. A further £55m left through capital redemptions.

Winterflood Investment Trusts estimates that £272m has been returned to shareholders through share buy-backs and £223m has been returned through tender offers.

In terms of rollovers, £127m is thought to have been moved into existing investment companies through the “winding up” of Anglo & Overseas, Eclectic and M&G Equity. Henderson Global Property Companies rolled over into Henderson International Income.

Of the two companies which have broadened their investment policy so far, Utilico Investments changed from primarily investing in infrastructure, utility and related companies to “investing in undervalued companies with the flexibility to invest in a variety of markets worldwide”.

Schroders also broadened the investment policy of its UK Mid Cap trust, changing the objective to focus solely on mid sized rather than small and mid sized stocks.