Will unbundling boost investment trust uptake?

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Platform unbundling will no doubt make investment trusts more accessible - but the jury is still out on whether it will make them more popular.

Investment trusts have long operated in the shadow of OEICs and unit trusts. The products’ complexity, inability to pay commission and higher risk when compared to their open-ended cousins has hindered wider take-up. Another major factor limiting their appeal is the fact investment trusts cannot be accessed via the three big fund platforms – Skandia, Cofunds and FundsNetwork – which operate bundled charging models. This is because investment trusts do not pay fund manager rebates – a vital cog in the bundled structure. But things are set to change as the three ‘big guns’ prepare to...

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