Accessing three 'closed' strategies via investment trusts

Accessing three ‘closed’ strategies via investment trusts

clock • 4 min read

In the next article of the series, FE's Josh Ausden explains how investors can get around the problem of the market's most popular open-ended funds getting too big or closing to new money

The advantages of trusts over their open-ended counterparts are well documented. However, one benefit that is often underestimated is inextricably linked to trusts' closed-ended structure.  Unlike open-ended funds, investment trusts are not as affected by inflows or redemptions, giving managers much greater freedom to express themselves. While open-ended funds can balloon in size and reach many billions of pounds in AUM within a few years of launching - the now £9bn M&G Global Dividend fund is a good example - even the oldest trusts seldom grow above £1bn. They can issue shares of course...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Insight: Navigating a new era for investing

Partner Insight: Navigating a new era for investing

Across the developed world, inflation is back and here to stay, says Wellington Management’s John Butler.

Sarka Halas
clock 13 March 2024 • 2 min read
Partner Insight: Should investors go global for more impact?

Partner Insight: Should investors go global for more impact?

Global investing offers scope for broader social impact as well as financial returns.

Sarka Halas
clock 11 March 2024 • 1 min read
Women in Investment Awards winner interview: Omotunde Lawal from Barings

Women in Investment Awards winner interview: Omotunde Lawal from Barings

Supporting the next generation

Katrina Lloyd
clock 07 March 2024 • 1 min read
Trustpilot