Quasi open-ended structures can control discounts

Using a quasi open-ended structure can help to control discounts and keep away arbitrageurs but will only work well if the trust is performing strongly

The investment trust sector is better referred to as the investment companies sector as it contains a growing number of closed-end investment companies which are not technically investment trusts. But their key defining characteristic remains that they are closed-end investment vehicles - with a fixed share capital - as distinct from open-ended funds, such as Oeics or unit trusts. Both types of fund have their perceived advantages and disadvantages for different types of investment strategy, but the main practical difference is that the value of the units or shares in an open-ended fund is...