No special treatment for investment trusts

Don't assume investment trusts are necessarily the best option for your client or as cheap as sometimes made out - only invest in them if they stand out against all other alternatives

Investment trusts have been around for more than 100 years and now hold billions of pounds worth of assets on behalf of investors. But despite the longevity and impressive statistics, that doesn't mean they deserve any kind of special treatment. Like every other kind of investment, trusts must provide a better solution to an investor's problem than rival products if they are to be judged worthwhile. From an IFA point of view investment trusts are just one tool among many and must live or die on their merits. When putting a balanced portfolio together we do not approach it from the point of...