How active management is shaping the future of UK investment companies
6 OCT, 2025
By Joanna Piwko from RankiaPro Europe
The London Stock Exchange (LSE) has long blended tradition and innovation. At its annual Investment Funds Conference on 3 October 2025, the spotlight was on investment companies, a product that has remained a cornerstone of UK markets for over 150 years.
We asked George Littlejohn MCSI, Senior Adviser at Chartered Institute for Securities & Investment, about the insights on the event and the industry. He particularly liked Katya Gorbatiouk’s comparison of the LSE as a “300-year-old fintech”. “It captures perfectly how the Exchange combines historical legacy with constant innovation”, he notes.
Investment companies have weathered wars, crises, and pandemics, providing permanent capital that fuels innovation in the UK and beyond. Their structure allows investors liquidity without diminishing the capital pool, a feature that has helped the UK stand out globally.
Yet, as Littlejohn mentions, even the most enduring structures need a source of light. “That light is active management—the expertise to structure portfolios, work closely with companies, and drive value across cycles,” he explains.
One pressing theme is the shift toward low-cost investing. Littlejohn emphasizes that this makes it more important than ever to show the value actively managed investment companies bring. With priorities like infrastructure, energy independence, and innovation, active management remains crucial.
Pension schemes holding over £3 trillion (€3.4 trillion) are reviewing equity allocations. The “Mansion House Accord,” signed in May 2025 by the 17 largest defined contribution pension providers, commits to investing 10% of funds in private assets by 2030, half in Britain. Littlejohn notes, “These companies can bridge large pools of capital with high-impact, productive investments.”
The scale of change is unprecedented. Moving £100 billion into private assets over four years will reshape careers and the industry itself. “The winners will be those who can illuminate the crown jewels through active management,” Littlejohn concludes, “while others lacking these skills will fall behind.”
Despite challenges, the combination of historical strength, innovation, and skilled active management promises a bright future for UK investment companies—a future where the crown jewel of the UK markets can truly shine.
