Investment trusts versus unit trusts

Despite their respectable performance records, investment trusts seem to remain the underdogs

There is plenty of evidence to suggest investment trusts outperform open-ended funds in bull and bear markets but the sector remains comparatively small. Despite their respectable performance track records (see table below), investment trusts do seem to remain underdogs against the open-ended universe. Among the reasons cited for this include the way intermediaries are rewarded and, arguably, their more complex structure against the backdrop of a far lower level of marketing and promotion, as well as choice. There are fewer than 500 investment trusts available to UK investors, less than...