Are investment trust boards in the dark about RDR?

At a conference last April, Jackie Beard, director of closed-end fund research at Morningstar UK, was horrified by some investment trust directors' lack of knowledge and awareness of the RDR. Over a year on, has she noticed any change?

One of the benefits of an investment trust is that there is an independent board of directors, whose role is to act in the best interests of shareholders at all times. The cost of this is wrapped up in the fund’s ongoing charges so, while it is an extra layer of fees, the overall impact is such that, in the main, the total charges remain competitive relative to their open-ended peers. However, that does not guarantee it is good value and in years gone by there have definitely been ‘jobs for friends’ rather than a search for the right skills for that fund. I believe it is getting better,...