Should you invest in 'racy' investment trusts?

Jemma Jackson of the Association of Investment Companies (AIC) looks at the rise of the specialist sectors and explains why closed-ended structures lend themselves to the space.

The investment trust sector is possibly best known for those large, retail-focussed products that tend to dominate the Global and UK sectors. Many of these have been delivering returns to shareholders since the latter part of the nineteenth century, which is no small achievement. But interestingly, a number of these long- established companies, today seen as a ‘one-stop investment shop’ due to their levels of portfolio diversification, were in fact the original specialist sector funds. Take the Scottish Mortgage trust as an example. Today a high profile Global Growth investment compa...