Szymon Idzikowski, closed end fund analyst at Morningstar, analyses the different ways investment trusts have evolved in light of the Retail Distribution Review.
Since the implementation of the Retail Distribution Review (RDR), investment trusts have come under the scrutiny of a broader audience, and rightly so. As a result, some boards have been proactive in trying to make their funds more attractive to existing and potential shareholders alike. One trend is stock splits. Over the past five years, 16 funds have sub-divided their shares, with nine of those happening in 2014 alone. A key argument in favour of stock splits is it keeps the share price attractive to individual investors. There is a psychological argument to say some investors feel...
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