Cherry Reynard outlines the key differences between investment trusts and open-ended funds and asks what is behind the recent resurgence in the sector?
Investment trusts have historically been a poor relation to open-ended funds: They paid no commission, so few advisers recommended them. Their reputation was tainted by the split cap scandal and advisers were also put off by unpredictable discounts and weaker performance. It remained at around one-sixth of the size of the open- ended sector. But there are signs of a resurgence for investment trusts, boosted by the changing regulatory environment, improved performance and certain income advantages. How do closed-ended funds compare to open-ended funds now? Closed-ended funds differ ...
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