Brewins' Newlands on the OEIC vs trust battle post-RDR

While many are hailing the RDR a new dawn for closed-ended funds, John Newlands, head of investment trust research at Brewin Dolphin, warns it could cut both ways.

As an ex-nautical man, noting the need to embrace the upcoming implementation of the Retail Distribution Review, I did think of giving this article the Nelson touch and calling it “Kiss me RD(R).” That was too cheesy even for me. Instead I am going to apply a horticultural slant and ask, as the prospect of early frosts loom, which type of fund will be the hardier (RDR – geddit?) in an era of financial climate change? What I am getting at here is that while conventional wisdom dictates that investment trusts will be the winners – given the sweeping away of initial and trail commission – I...