Hawksmoor IM's Daniel Cartridge: Investment trust interests must be better aligned

Clients need to be protected

There needs to be significantly better alignment in the investment trust universe between boards of directors, investment managers, and brokers with shareholder interests.

This requirement becomes increasingly obvious when discounts to net asset values are persistent, as there is no motivation to take action when the incentive structures in place are so poor. Board of directors The job of the board of directors is to ensure shareholder interests are always looked after. This is a wide-ranging remit, including making sure that the investment adviser is managing the vehicle to the best of their abilities, and in line with the objectives of the trust, to ensuring that the trust structure is relevant, and shareholder returns are closely aligned with net a...