Investment companies value up in 2010

UK investment companies out-performed the FTSE this year, according to research, in news which may be of interest to holders of private wealth.

A report by the Association of Investment Companies (AIC) found its members' average worth increased by 17 per cent in 2010, compared with a rise of 10 per cent for the FTSE 100.

Confidence was also up among fund managers, with more than 90 per cent predicting positive market activity in 2011, a jump of 18 percentage points on this time last year.

The number of launches increased, with 14 new investment companies in 2010 raising a total of £1.7 billion, compared with just four in 2009 which generated £566 million.

Meanwhile, seven venture capital trusts started up in 2010, an increase of five on the year before.

Commenting on the figures, AIC director general Ian Sayers said: "The industry has seen a boost in new launches this year in a wide variety of different sectors and it is promising to see that 95 per cent of managers polled by the AIC believe this level of activity will continue or increase in 2011."

In a recent article for Financial News, markets expert Elizabeth Pfeuti revealed investors are increasingly moving back towards managed funds after a prolonged period of favouring low-risk assets. ADNFCR-2318-ID-800303952-ADNFCR