Private investors now hold more than a quarter of all investment company shares, with their share climbing to 27%, worth £57 billion, according to a new report from the Association of Investment Companies (AIC).
That’s up from 26% and £55 billion the year before, a measured but meaningful increase in the ownership of investment trusts by private individuals.
One pound in every six of investment company shares is now held through just three platforms: Hargreaves Lansdown, interactive investor and AJ Bell. Hargreaves Lansdown alone accounts for £14.5 billion, with interactive investor close behind at £13.7 billion and AJ Bell at £5.1 billion.
Wealth manager shares, meanwhile, has stablised. After two years of declining share, wealth firms including Rathbones, Evelyn Partners and Brewin Dolphin held steady at 24% of investment trust shares at the end of 2025, with holdings worth £50 billion.
Rathbones is now the single largest wealth management holder at 4.9% of all investment company shares by value, bolstered by its merger with Investec.
Institutional investors still command the biggest slice of the pie at 46%, though their share has fallen. Adviser platforms hold a modest 2%.
Richard Stone, Chief Executive of the AIC said: “During a tumultuous time for investment companies, it is good to see that wealth managers’ share of the industry has held steady and that private investors have continued increasing their share. We are not quite at the point where every headwind is turning into a tailwind, but there are some positive signs, such as the narrowing of the discount from 19% in 2023 to 11% today, and the partial resolution of the cost disclosure issue that has been a cloud over the sector for some years.”
The AIC’s report, based on analysis of £187 billion in holdings, roughly 90% of the sector’s £208 billion market capitalisation, also reveals an interesting insight into international participation. UK investors hold 74% of investment company shares overall, but that drops sharply to just 58% for trusts investing in alternative assets. US investors pick up much of the difference, holding 23% of alternatives-focused trusts compared to 13% of the broader sector.
The FTSE 100 was trading in the red on Tuesday after AI worries hit US stocks overnight, dragging the S&P 500 lower and hitting sentiment in Europe.
The market is still showing signs of concern around the potential for AI disruption, evident in a sell-off in US financials overnight – the latest sector to be hit by targeted selling, which is seemingly moving from sector to sector.
AI-related selling spilled over into the UK session and put AI beneficiary software stocks on the back foot in early trade, although losses here were partially offset by strength in commodities and strong earnings from Croda and ConvaTec.
“While investors looked a bit dazed from a wobbly start to the trading week, market movements on Tuesday would suggest they’re regaining their balance rather than falling over,” says Dan Coatsworth, head of markets at AJ Bell.
“European indices were down a touch amid weakness in financials and pharma, yet the FTSE 100 was propped up by strength in oil and consumer goods sectors. Futures prices imply small gains on Wall Street when trading opens later today, which is important as that could help repair investor sentiment.
“Investors have plenty to worry about, and Nvidia’s results on Wednesday have the potential to make or break the market depending on what it says about AI.”
The FTSE 100 was trading 0.3% lower at the time of writing as strong corporate results limited losses elsewhere.
“That’s offset continued falls in software and data-focussed companies such as Sage, RELX, Experian and the London Stock Exchange Group as herd mentality stokes anxiety around the threats from Artificial Intelligence. Warren Buffett’s mantra of being greedy in times of fear could serve investors well here, as long as they’re prepared to hold for the long-term,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
RELX was down 1.8% while Sage lost 0.7%.
Croda was among the gainers after the specialty ingredients and chemicals group posted a 4.4% increase in sales and a 4.8% rise in adjusted EBITDA. Shares were 2% higher.
ConvaTec was the FTSE 100’s top riser, surging 8%, after increasing its guidance amid an improving pipeline and outlook.
Jonny Mason, Chief Executive Officer of ConvaTec, said: “Convatec performed strongly in 2025, demonstrating further resilient growth. We delivered broad-based organic revenue growth across all categories, supported by new product launches, operating margin expansion, mid-teens growth in adjusted earnings per share and strong cash conversion.”
“Looking ahead, we are increasing our medium-term revenue growth target to 6-8% from 2027. This acceleration follows the successful implementation of our strategy and is underpinned by our rich innovation pipeline.”
Melten Energy & Metals led the charge in the commodities sector, posting gains of 3%. Rio Tinto rose 0.6%.
ConvaTec shares surged to the top of the FTSE 100 leaderboard on Tuesday after lifting its outlook amid strong earnings growth and a ‘rich innovation pipeline’.
ConvaTec has reported a solid set of full-year results for 2025, with revenue rising 6.5% to $2,439m and adjusted operating profit climbing 12.1% to $544m. Adjusted diluted earnings per share grew 16% to 17.6 cents, comfortably in the mid-teens range the group had guided towards.
The adjusted operating margin widened by 110 basis points to 22.3%, whilst the company generated $362m in free cash flow to equity before growth capex. This was broadly flat year-on-year, but reflecting a step-up in capital investment to $185m as the group backs its pipeline.
This was all good news for investors, who were happy to bid the stock higher on Tuesday, sending shares up 7.4% as of the time of writing.
Growth across the board
All four divisions delivered organic revenue growth. Infusion Care led the way at 12.5%, driven by strong demand for infusion sets in both diabetes and non-diabetes treatments.
Continence Care grew 6.6% on US volume gains and expanding international sales, whilst Ostomy Care added 4.5%, supported by new patient starts and the well-received Esteem Body launch. Advanced Wound Care grew 4.1% excluding InnovaMatrix, which fell 30% to $69m following a $72m impairment charge on the Triad intangible asset.
2026 outlook
Management expects organic revenue growth of 5-7% excluding InnovaMatrix. The adjusted operating margin is guided to at least 23.0%, taking into consideration tariff costs in the first half. The group is confident it can replicate its double-digit adjusted EPS growth again in the coming year.
“Convatec performed strongly in 2025, demonstrating further resilient growth. We delivered broad-based organic revenue growth across all categories, supported by new product launches, operating margin expansion, mid-teens growth in adjusted earnings per share and strong cash conversion,” said Jonny Mason, Chief Executive Officer of ConvaTec.
“Looking ahead, we are increasing our medium-term revenue growth target to 6-8% from 2027. This acceleration follows the successful implementation of our strategy and is underpinned by our rich innovation pipeline. These results are also testament to our great team of Convatec colleagues who bring our promise of forever caring to life daily for the millions of people around the world who rely on our trusted medical solutions.”
The group returned $300m through share buybacks and is recommending a full-year dividend of 7.244 cents, up 13%.
Analysis for informational purposes only. Capital at risk.
The Brand Illusion: Store aisles suggest plentiful choice, but the market has flipped. Chinese challengers (Haier, Midea) have absorbed or outcompeted many legacy Western labels (GE, Toshiba, Fisher & Paykel), while Korean firms (Samsung, LG) now mainly defend the premium tier. This consolidation is most visible in fast‑growing categories like robot vacuums, where the top five Chinese manufacturers account for roughly 70% of global shipments.
Hidden Component Dominance: Control sits below finished goods. Midea and Gree together produce an estimated 70–75% of the world’s AC compressors, and Sanhua holds roughly 45% of key AC control components (valves, heat exchangers). As a result, many Western brands effectively fund their competitors by sourcing high-margin internal parts from them.
How Chinese Incumbents Keep Growing: Despite a weak domestic property cycle, Haier and Midea have sustained high‑single‑digit revenue CAGRs via overseas expansion, commercial and non‑appliance products, and moving into premium segments.
China’s Win in Home Appliances
The home appliance market looks full of choice—premium Western heritage brands, mid‑range Korean brands, and low-cost Chinese labels. But beneath the badges, competition has become more cosmetic. Chinese manufacturers now control volume, components, and scale, effectively “buying the pyramid” and reshaping industry economics.
The white goods industry has now evolved into a “three-tier” ecosystem:
• The Attackers (China) — Haier, Midea, Gree: These firms combine vertical integration, component ownership and massive OEM/ODM scale. That lets them undercut incumbents on price, win volume globally, and pull ahead on revenue compared with peers like LG, Panasonic and Whirlpool.
• The Defenders (Korea) — Samsung, LG: Rather than competing on cost, they are leaning into software, services and smart features to protect margins and maintain premium positioning.
• The Retreaters (US/EU/Japan) — Whirlpool, Toshiba, GE: Many legacy Western and Japanese firms are pulling back from global volume plays, focusing instead on home markets or profitable niche segments.
Source: Companies, AP
The Fall of The Old Guard
Western and Japanese brands increasingly ceded manufacturing control to Chinese firms, often keeping the brand while outsourcing (or selling) production and supply chains.
Sanyo: White goods business acquired by Haier (2012).
Fisher & Paykel: Acquired by Haier (2012).
GE: Sold to Haier (2016). Haier now leverages the GE brand to sell premium appliances in the US while sharing global manufacturing and distribution.
Toshiba: Midea acquired Toshiba’s appliance business (2016), retaining patents but replacing the supply base.
Gorenje: Acquired by Hisense (2018).
Candy: Acquired by Haier (2019).
Philips: Domestic appliances sold to Hillhouse Capital (2021).
Whirlpool: Pulled back from Europe, spinning EMEA operations to Beko Europe (2024) and shifting focus to North America.
Teka: Acquired by Midea (2025).
The New Big 3: Haier, Midea, and Gree
• Midea (300 HK) — World’s largest appliance maker by volume, capturing ~24% of the global volume in residential air conditioners and ~14% in laundry. Broad OEM/ODM business (c.60% of overseas revenue), dominant in AC compressors (c.45%).
• Haier (6690 HK) — #1 global major‑appliance brand for 17 years; strong in refrigerators and washing machines; grows through acquisitions and brand rollouts (GE, Candy, Fisher & Paykel).
• Gree (000651.SZ) — Specialist in air conditioning with deep domestic exposure and market leadership in compressors (c.25–30% share).
Midea is the largest of the three by revenue driven by a diversified product mix and a substantial overseas OEM/ODM business. Gree is the smallest, due to its narrower focus on air conditioners and heavy dependence on the domestic market.
Source: Companies, AP
Despite a weak domestic property cycle that weighed on appliance demand, Haier and Midea have delivered high‑single‑digit revenue CAGRs in recent years, driven by overseas expansion, product diversification into commercial/non‑appliance segments, and premium products.
Source: Companies, AP
Gree’s growth has lagged because of its exposure to residential ACs (which track the property market). In response, Gree has leaned on higher dividend payouts and channel reforms to improve margins while pursuing gradual diversification. As a result, and because room ACs generally carry higher margins than other appliance products, Gree now reports the highest net margin of the three.
Source: Companies, AP
Category Highlights and Implications
Air Conditioning: The Triopoly and the Hidden Dominance
The Triopoly: Haier, Midea and Gree produce roughly 50% of residential ACs globally. Including OEM production for legacy brands, China accounts for ~70% of room ACs.
Source: AP estimates
The Hidden Dominance: Midea and Gree together make 70–75% of global AC compressors. Key control components (valves, heat‑exchangers) are dominated by Chinese suppliers such as Sanhua (2050 HK) with ~45% share.
Source: AP estimates
Daikin: The “Last Samurai”: Daikin remains the major non Chinese player with strong position in the premium and commercial segment.
Refrigeration: The “Cold Chain” Consolidation
The Rise of Haier: Haier controls an estimated 20–23% of global refrigerator volume via acquisitions and OEM scale — near double the next competitor.
The Fall of Whirlpool: Whirlpool has ceded significant global ground, exiting Europe and selling China operations.
Koreans’ “Smart” Defense: Korean players defend the premium tier with “smart” features; LG now leads the US fridge market on share (c. 24%) via premium positioning.
The “Silent” Challenger: Midea, which owns the Toshiba appliance brand, captures roughly 10% of the branded global refrigerator market and operates a large OEM/ODM business.
Source: AP estimates
Washing Machines: A Tight Race
A tight race: Haier leads with ~16% share, but LG, Samsung and Whirlpool each retain over 10% shares, limiting a full Chinese monopoly.
Whirlpool’s stronghold in the US: Whirlpool maintains a dominant US position (~46%) due to brand loyalty and channel strength.
Korean players’ tech moat: Samsung and LG defend premium pricing with tech-led differentiation (AI sensors, auto dosing).
Source: AP estimates
Smart Robotics Cleaner: Pioneer dismantled
Chinese dominance: Five Chinese makers (Roborock, Ecovacs, Dreame, Xiaomi, and Narwal) control nearly 70% of the global shipment volume. They won by deploying advanced R&D, such as LiDAR navigation and AI object avoidance, at fast speed.
The Fall of the Pioneer: iRobot, which invented the Roomba, filed for Chapter 11 bankruptcy in December 2025 and is being acquired by its own Chinese manufacturer, Picea Robotics.
Source: AP estimates
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AIM-listed workspace technology provider essensys, has agreed to a recommended cash offer from essensys Bidco Limited, a newly formed vehicle backed by essensys founder and controlling shareholder Mark Furness.
The offer values the company at approximately £11.3 million, with shareholders set to receive 17 pence per share in cash. That represents a premium of around 9.7% to the closing price of 15.5p on 27 November 2025, before the offer period began, and an 11.3% premium to the one-month volume-weighted average price over the same period.
The company’s independent directors, advised by Canaccord Genuity, have backed the deal, while Furness himself was excluded from that decision due to his role as Bidco’s controlling shareholder.
As an alternative, shareholders can elect to receive one new Bidco share for each essensys share held, though these carry no voting rights.
Founded in 2006 and admitted to AIM in 2019, essensys provides software and technology to landlords and flexible workspace operators across the UK, Europe, North America and Asia-Pacific.
Under new leadership over the past year, the company has streamlined its strategy around two core products: the essensys Platform, a SaaS solution for enterprise-grade wi-fi across multi-tenant workspaces, and elumo, a bookings and access tool launched in March 2025.
If the deal goes ahead, which it looks like it will, essensys will be the latest London-listed firm to succumb to poor performance and lack of investor interest.
“I founded essensys almost 20 years ago and remain its largest shareholder. In recent years, we have undertaken significant work to reshape the business – strengthening our digital experience capabilities, deepening relationships with blue-chip global customers and materially improving our cost base and operational discipline,” said Mark Furness of essensys Bidco.
“essensys Platform has been repositioned to meet evolving market needs, and elumo, following a long and complex development journey, is now at the beginning of its commercial rollout.
“However, trading volatility and continued weakness in the Company’s share price mean that, in my view, essensys cannot sustainably continue as a quoted company in its current form. The costs, constraints and short-term pressures associated with a public quotation are increasingly disproportionate to the Company’s scale and to the investment required to realise the opportunity ahead.
“I believe essensys now needs to operate as a private company with greater agility, a lower structural cost base and a longer-term horizon.”
Unite Group has agreed to sell St Pancras Way, a 571-bed student accommodation property in London, to the Unite UK Student Accommodation Fund (USAF) for £186 million.
USAF is the largest specialist student accommodation fund in the UK, comprising around 28,000 beds across 68 properties in 19 university towns and cities. Unite holds a 28% stake and acts as the fund’s manager.
The disposal price represents a roughly 1% discount to the property’s December 2025 book value and yields a net operating income of 4.7%. Unite’s share of the transaction comes to £126 million, with the company expecting minimum net cash proceeds of £115 million.
St Pancras Way was developed by Unite in 2014 and is fully nominated to University College London for the 2026/27 academic year. A light refurbishment of common areas is due to be completed later this year.
The deal will be funded through existing cash headroom in USAF and the issue of new USAF units, fully underwritten by Unite. Depending on whether existing USAF investors exercise their pre-emption rights, the equity issue could lift Unite’s ownership in the fund from 30% to a maximum of 32%, though the company intends to bring that back to around 30% over the medium term.
The deal was announced alongside 2025 results that showed adjusted earnings rose 9% as average rents rose 4%.
The group, however, noted that the new PBSA supply was 50% below pre-pandemic levels, and there were also pressures from HMOs.
“Unite Group’s full year 2025 results are a tale of operational resilience amid gathering clouds for UK student housing,” said Adam Vettese, market analyst for eToro.
“Rents climbed 4%, occupancy hit a very impressive 95%, and adjusted earnings rose 9% which seems to tick all the boxes on execution. Cash flow remains robust, share buybacks continue, and the balance sheet is in reasonable shape with EPRA net assets slightly off but steady at 955p per share.”
The FTSE 100 recovered early losses on Monday as traders digested the latest volley of tariff threats by the US President.
While tariff announcements still bring back memories of the fallout from Liberation Day last April, Trump’s propensity to ‘chicken out’ and not follow through on threats has meant the latest outburst was taken largely in the market’s stride.
London’s leading index was flat at the time of writing after recovering losses of around 30 points in the opening hours of trading.
“There is some trepidation in the air after last Friday’s ruling from the Supreme Court,” said AJ Bell investment director Russ Mould.
“While tariffs are generally not seen as market friendly, investors had absorbed the trade policies announced by the Trump administration last year and were just hoping for some certainty and stability.
“Last week’s intervention from the Supreme Court delivers none of that – President Trump’s subsequent announcement of 10% global levies, rising to 15% over the weekend, can stay in place for a few months before they require congressional approval.”
There was a 60:40 split in favour of FTSE 100 gainers on Monday, reflecting the indecision Trump’s comments over the week brought to markets.
JD Sports was the FTSE 100’s top gainer after the struggling retailer launched a £200m buyback programme as shares languished around 80p. JD shares traded above 230p in 2021 and have slowly ebbed away since.
Fresnillo broke above 4,000p, trading up 4% on the day, to the highest point in February as precious metals attracted traders on the back of Trump’s tariff announcement. Gold miner Endevour Mining was 3.6% higher.
Mondi was the FTSE 100’s top loser as selling pressure sparked by last week’s results persisted. Shares were down another 3% on Monday.
Recent all-time highs for BAE Systems prompted profit-taking on Monday, sending shares 2% lower.
At a general meeting last week shareholders voted in favour of the change in strategy of property loans provider Develop North (LON: DVNO) to include property investment and the share issue to finance the enlarged business. There is an offer that could raise up to £58m at 81.6p/share.
The planned fundraising has taken slightly longer than anticipated to be launched, but the investment adviser wanted to ensure everything was in place first.
NAV is currently 77.5p/share. Management is targeting an annual yield of 6%-7%, plus a 4% annual capital increase. The current yield is 5.2%.
The company currently provides property-backed loans in north east England. This will continue, but there will also be direct investments in commercial and residential property. Each of the areas – loans, commercial and residential – is likely to account for around one-third of the portfolio.
The initial aim is to build up a portfolio of assets with a net asset value of £100m and then increasing it to £300m in five years. There is a revolving credit facility available, as well as potential co-investment opportunities.
In January, Michelle Percy was appointed chief executive. She previously worked for Newcastle City Council and was involved in public private partnerships. She is independent of investment adviser Tier One Capital and adds further experience of the economy in north east England.
There is a retail offer that closes on 30 March. Cavendish is the retail offer coordinator. Authorised intermediaries that have been confirmed are AJ Bell, Interactive Investor, Hargreaves Lansdown, Redmayne Bentley and Shore Capital. There are other intermediaries awaiting confirmation.
The current share price is 77.5p. The bid offer spread is 73p/82p, so it costs slightly more to buy the shares in the market than via the offer. That spread reflects the limited volumes. Liquidity could improve after the offer because of the wider spread of shareholdings and that could narrow the bid/offer spread.
It is uncertain how much cash will be raised but Develop North can raise more cash at a later date following the approvals at the recent general meeting. The potential yield, combined with potential growth in assets, will be attractive to investors.
Oil and gas company Empyrean Energy (LON: EME) has concluded documentation for the dispute with Conrad Asia Energy, the operator of the Duyung PSC and the Mako gas field in Indonesia. Conrad will make an immediate $5m farm-out cash payment to West Natuna Exploration as the first instalment of the total payment of $16m. Empyrean Energy is entitled to 8.5% of these cash payments. The share price rebounded 20.7% to 0.0875p.
Eqtec (LON: EQT) has received a conversion notice for the facility agreement with Global Investment Strategy for the remaining principal of £160,000 to be converted into 470.6 million shares at 0.034p each. The share price improved 15.9% to 0.0475p.
Celsius Resources (LON: CLA) has received firm commitments of A$9.3m for a fundraising at A$0.02 from new and existing shareholders. Demand was greater than expected. The new shares come with options exercisable at A$0.035 each, while existing shareholders will receive one bonus loyalty option for every ten shares held exercisable at the same price. The cash will finance the Maalinao-Caigutan-Biyog (MCB) copper gold project in The Philippines. The share price increased 7.69% to 1.05p.
Atlantic Lithium (LON: ALL) says it has ended discussions with a potential bidder. The mining lease for the Ewoyaa project in Ghana has still not been ratified, but management believes it is in progress. Spending on exploration on other projects is being reduced to conserve cash. The share price rose 6.67% to 19.2p.
FALLERS
Oil projects developer TomCo Energy (LON: TOM) has raised £550,000 at 0.03p/share. CMC Markets has been appointed joint broker. Oil sands project developer Greenfield Energy is now jointly owned with Valkor, whose founder will join the TomCo Energy. Greenfield Energy’s loan facility provided by Valkor, currently $799,500 has been amended to extend the repayment date of the remaining loan to February 2027 after 50% is repaid in TomCo Energy shares at 0.1p each. The annual interest charge is 2.7%. The share price slumped 31.85 to 0.0375p.
Wound healing technology developer AOTI Inc (LON: AOTI) says 2025 revenues will be in line with consensus of $66.1m, up 14% on 2024, but it is stopping trading in Arizona because of problems with payments. Pre-tax profit could be $2.8m. Net debt of $6.5m is better than expected. Arizonia Medicaid contributed $9.2m to 2025 revenues. There is $15.6m owed by Arizona and there could be write downs in the 2025 accounts when they are published. The results will be announced on 30 March. A CMS local coverage determination is expected in the near-term and that will help to accelerate growth. Revenues could still rise this year without a contribution from Arizona, but profit and margins will decline in the short-term. The share price declined 12.2% to 32.5p.
Floorcoverings manufacturer Victoria (LON: VCP) says third quarter revenues fell 3%, which means that the rate of decline was slowing. However, January was weak and the current fourth quarter decline is running at 5%. Full year EBITDA is expected to be £95m, a downgrade from £110.7m. The outlook for 2026-27 is reduced, but production changes could help to improve margins. Property sales will help to cut debt. The share price fell 9.58% to 23.6p.
United Oil and Gas (LON: UOG) has completed stage 2 of surface geochemical exploration on the Walton-Morant licence area in Jamaica. Stage 3 piston coring has started. There are up to 42 cores planned. The share price slid 7.69% to 0.18p.
Cizzle Biotechnology shares jumped on Monday after announcing it had agreed a new payment schedule with its North American licensing partner Cizzle Bio Inc (BIO) that adds a further US$3.5m in guaranteed minimum royalty payments.
The additional payments, equivalent to at least US$500,000 per year, will kick in when the current agreement is extended in 2031. They sit on top of the existing US$2.4m in guaranteed advance royalties due by the end of 2026, of which US$590,000 has been received so far.
The remaining US$1.81m is expected before 31 December 2026, though the company has cautioned it may need to seek alternative funding if those payments are delayed.
Under the licence, Cizzle receives a 10% royalty on gross sales of its CIZ1B biomarker test, which is designed to detect early-stage lung cancer.
“The Company and BIO are committed to provide clinicians with an important cost-effective tool in early cancer detection which, to become scalable and widely available, requires a long-term collaborative approach,” said Allan Syms, Executive Chairman of Cizzle Biotechnology.
“The further guaranteed minimum royalty payments to be paid by BIO over the long term, along with a payment plan aligned with the launch and commercialisation of the test, means that BIO has now confirmed the Company will receive a minimum of US$5.9m over the contract term.”
