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Where the money has been flowing in a year of turmoil

Secondary fundraising has faltered but not dried up unlike IPOs
November 17, 2022
  • With markets tumbling, investment trusts have struggled to raise funds after a strong 2021
  • Defensive funds and infrastructure plays have remained popular for now

This year’s market volatility has brought the investment trust fundraising bonanza of 2021 to an abrupt halt, with just a handful of sectors continuing to rake in the cash.

Fundraising for the investment trust sector as a whole came to around £5bn for the first 10 months of this year, down from the record £11.4bn raised in the equivalent period in 2021. The 2022 amount has come entirely via secondary fundraising, with not a single initial public offering (IPO) having succeeded as at the end of October, compared with 10 launches in the first 10 months of 2021.

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