Should you steer clear of fund offerings?

Is it good for investors when a fund issues new shares? Max King investigates.

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BioPharma Credit: a risky but tempting prospect
(Image credit: kasto80)

It's been a good year so far for equity issuance in the investment-trusts sector. Equity issuance is a process whereby a listed entity creates and sells shares to raise funds. Helped by rising equity markets and low bond yields, more than £4bn had been raised before the election, and the pace shows no sign of slackening. This is all good news for fund sponsors, advisers and managers, but is it positive for investors?

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.