Industry Analysis & Industry Trends
Investment trusts are closed-ended funds that raise funds by issuing a set number of shares when they are launched. Funds raised are then invested in a range of stocks and shares in order to generate investment returns and income. Industry participants are involved in managing and administering investment trusts in order to provide superior returns and receive a fee for their services. Therefore, industry revenue is equivalent to the fees earned. Fees are calculated as a percentage of the value of assets under management (AUM).
The industry has trended upwards during the past five years. Financial markets improved, despite enduring some volatility, supported by quantitative easing activity and loose monetary policy, which contributed to growth... purchase to read more
Industry Report - Industry Key Buyers Chapter
The largest four investment trusts are estimated to have a market share of 15.6% in terms of total AUM in 2016-17. This indicates that the industry has a low level of market share concentration. However, concentration levels vary depending on the type of investment trust and their particular investment focus. The top-10 investment trusts are expected to account for 28.4% of total AUM. Approximately 21 investment trusts have AUM worth over £1 billion, while around 54 have AUM worth less than £10 million.
Although the total number of investment trusts is estimated to increase over the five years through 2016-17, market share concentration is expected to increase due to some consolidation activity. Tru.. purchase to read more