There has been a record total of 10 mergers between investment trusts in 2024 so far, double the amount of the previous record year, data from the Association of Investment Companies (AIC) has revealed.

This year also saw five liquidations in the investment trust market, while 32 investment trusts changed their fees to benefit shareholders as boards continued to respond to ‘deep discounts’.

AIC noted that the number of mergers in 2024 was double the five mergers completed in the previous record year (2021), while six investment trusts were acquired in 2024.

A total of 32 investment trusts changed their fees this year, up from 26 in 2023, and two manager changes took place.

The discount of the average investment trust, excluding 3i, was 13.7 per cent at the beginning of the year, rising to 15.2 per cent by 12 December.

This year also saw a record high for share buybacks, with £6.95bn of shares repurchased during the first 11 months, according to the latest figures from Winterflood, using Morningstar data.

By comparison, there were £3.9bn of buybacks in 2023, the previous record high.

Industry assets at the end of November totalled £271bn, a 4 per cent increase from the £260bn of assets at the beginning of the year.

Over the first 11 months of 2024, investment trusts paid out a total of £5.99bn in dividends.

Meanwhile, fundraising by existing investment trusts (secondary fundraising) fell from £1.1bn in 2023 to £804m in 2024 so far, and there were no investment trust IPOs this year.

“Discounts have remained wide this year, prompting boards to take action,” commented AIC chief executive, Richard Stone.

“We’ve seen a record number of mergers, record share buybacks and 32 investment trusts have cut their fees.

“So far this century, investment trusts have weathered the financial crisis, the dotcom boom and bust and a global pandemic.

“As we look forward to 2025, we will continue to see the investment trust industry innovate and adapt to meet investors’ needs.”

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