Liquidity was the third biggest concern cited by 53 per cent of advisers. Of course, liquidity depends on how much is being invested and the size of the investment company you are investing in. Most advisers who are dealing on behalf of their clients in small amounts will have little difficulty getting hold of stock.
Interestingly, the analyst Winterflood has recently looked at investment companies’ liquidity. There were 30 investment companies in 2013 which had average daily volumes of more than £1m and a further 36 with average daily volumes of more than £0.5m. Winterflood concluded that “the majority of investment companies offer reasonable liquidity and at the larger end of the market, we would argue that liquidity is good”.
If you would like to find out more about the AIC’s training and information on investment companies, go to theaic.co.uk/financial-advisers.
Find out more about adviser views on investment trusts in the MM Intelligence: Investment trusts report.
