Three reasons to consider trusts over open-ended peers

Alternatives, gearing and the ability to play the premium/discount are three reasons to consider trusts according to Andrew Summers, head of collectives and fund research at Investec Wealth & Investment

1. The trusts that invest in assets or strategies that are only available in investment trust format There are remarkably very few assets or strategies that can only be accessed via a closed ended-format, but they include private equity, some hedge fund strategies and a wide range of illiquid credit strategies. What these all have in common is they invest in ways that are simply not compatible with regulated, open-ended funds. This is an interesting area for investors and a great opportunity for the trust industry because there is no competition from the traditionally more visible and ...