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Win £5,000 to invest in an investment company

The Association of Investment Companies, in association with Investors Chronicle, is offering readers the chance to win £5,000 to invest in an investment company of their choice
November 16, 2018

This year is a special year for investment companies, as it marks 150 years since the launch of the first investment company, F&C Investment Trust. Today, there are hundreds of investment companies listed on the stock exchange, with combined total assets of £189bn – a record high. 

But how do you decide if an investment company is right for you? Which one(s) should you choose? Well, that very much depends on you. Are you an income seeker, do you want to focus on growth or are you looking for a combination of the two? And what is your attitude to risk? 

Strong long-term performance 

While past performance is no guide to future returns, we all like to look at performance data and consistency is obviously a factor for consideration. When looking at performance data, it makes sense to look at a variety of time periods and also to look at year-on-year annual past performance, to give a clearer picture of how a company has performed in different market conditions. 

The investment company sector covers a diverse range of investment sectors and the Association of Investment Companies (AIC) provides a wealth of information to help investors along the way. The AIC’s website www.theaic.co.uk provides performance data, as well as information on gearing (borrowing), discounts/premiums, dividends, charges, and portfolio and management information – all part and parcel of the research process.

Innovation

 Investment companies are pioneers and originally invested in US railroads, mines and natural resources. Today, investment companies remain innovative and continue to explore investments in new opportunities. The closed-ended structure lends itself very well to innovation, as the growth of specialist sectors in areas such as debt, infrastructure and renewables in recent years demonstrates. In addition, some companies are using interesting investment strategies that are difficult to replicate elsewhere, such as in private equity and venture capital trusts. If you are looking for a company that’s a little bit different, the investment company sector offers a good deal of choice. And there are plenty more companies focused on traditional assets, if you prefer those.

Income

The investment company sector has an unrivalled dividend track record, because companies have the flexibility to retain some of the income they receive each year and squirrel it away for the leaner years. Known as dividend smoothing, this has enabled many investment companies to increase their dividends through good and bad times. There are 20 investment companies that have increased their dividends each year for 20 years or longer, with four investment companies having consecutively increased their dividends for 50 years or more.

Durability

The past 150 years has seen many highs and lows, which include two World Wars, the Great Depression, the tech boom and bust, and the 2008-09 financial crisis – to name a few. Although these were difficult times, 150 years of investment company history demonstrates the strength and durability of the investment company structure, and it is just as relevant for investors today. 

For more information on investment companies, visit www.theaic.co.uk.

Click here to enter our prize draw and be in with the chance to win £5,000 to invest in an investment company of your choice.

 

Terms and conditions

The Prize Draw is open to participants in the UK only. Participants must be over 18 years of age. 

Issued by the Association of Investment Companies. All entries to this competition must be received by 14 December 2018. The winner will be the first correct entry drawn at random following the closing date for entries.

The name and county of the winner will be available from 21 December 2018 upon receipt by the FT of a self-addressed envelope at the following address: Victoria Christie, Investors Chronicle, The Financial Times, Number One, Southwark Bridge, London, SE1 9HL.

The Promoters are:

• The Financial Times Ltd, Number One Southwark Bridge, London, SE1 9HL; and 

•The Association of Investment Companies, 9th Floor, 24 Chiswell Street, London EC1Y 4YY.

 

For full details of our terms and conditions, please visit investorschronicle.co.uk/prizedraw.

 

Only one entry per person is admitted. This offer is only open to UK residents aged 18 years or over and excludes employees of the AIC, connected companies, their agents or their families, or anyone connected with the competition. The judge’s decision is final. Investment companies are equities whose value can go down as well as up and you may not get back the full amount invested. Past performance is not a guide to future performance.