Delivering value for shareholders

investment trusts

Recent changes in the investment trust industry have seen an additional layer of corporate governance provided by strong, independent boards which should help to add value for intermediaries and their clients

As advantages go, high performance and low cost are hard to beat but these have never been enough to ensure broad intermediary support for investment trusts. Barriers have included the lack of remuneration for IFAs within the investment trust structure, their perceived complexity compared with Oeics and unit trusts, the additional risk from gearing, and discount volatility. In recent years, boards, managers, regulators and advisers have brought about major changes that are delivering value for shareholders. The investment trust sector is growing again, with a net inflow of £2.6bn into ...