There has been a recent resurgence in demand for closed-ended funds such as investment trusts as they are ideally structured for investment away from the mainstream
Investors have become less inclined to pay fees for funds that hug the indices and quote tracking error as a key measure of performance. They are embracing all manner of alternatives. This explains the resurgence in demand for closed-ended funds such as investment trusts as they are ideally structured for investment away from the mainstream. Once a strategy moves away from large-cap equities, the ability to trade quickly becomes an issue as liquidity is much more restricted. In these sectors it is important that fund managers are protected from daily flows into and out of the portfolio....
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