DFMs eye investment trust opportunities amid wide discounts

Increase in business

Discretionary fund managers’ use of investment trusts has increased considerably over the last three years, according to a survey by Research in Finance.

The proportion of business written in investment trusts has risen from 9% in Q1 2020 to 14% in Q1 2023. 91% of investment trusts end H1 on discount as macroeconomic stresses bite In a separate study, Research in Finance discovered that 24% of DFMs expect to write more investment trust business in the next six months, 65% believed they will write the same amount, while just 11% said they expect to write less. Of the DFMs that expect greater use of investment trusts, the vast majority (95%) said the current discounts look attractive. Other reasons included taking advantage of volatil...