Which UK companies have investment company managers been favouring? With the UK in the spotlight, the Association of Investment Companies (AIC) has published details of which UK companies are held by the highest number of investment companies in their top holdings.
Interesting exceptions
The UK companies held by most investment companies are dominated by FTSE 100 companies, with dividends no doubt being one of the key drivers. But there are some interesting exceptions: for example, Provident Financial, the 13th most widely held top holding, is a FTSE 250 company, alongside Berendsen, the 16th most widely held top holding. Amlin, the 19th most widely held top holding, is also a FTSE 250 constituent. Senior, a FTSE 250 company, also makes the list and is held by 18 investment companies.
Top ten companies
Dividend payers dominate the top ten companies held by UK investment companies, with banks, oil and gas, and pharmaceuticals prominent. It’s also interesting to see some fund managers increasing their cash exposure, possibly in anticipation of potential buying opportunities ahead.
Investment companies are one of the best ways to spread investment risk across a range of companies, but investors need to take a long-term view and ensure they hold a balanced portfolio.
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Source data:
Cash holdings data as at 31 March 2015. Source: Morningstar.
Portfolio holdings as at latest available date. Prepared April 2015. Source: Morningstar.
The Association of Investment Companies (AIC).
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