Investment trusts: Dispelling the myths

INVESTMENT TRUSTS

clock • 3 min read

The RDR was billed as a new dawn for investment trusts yet they are still viewed with caution. Henderson's James de Sausmarez irons out some of the misunderstandings.

It has long been the fate of investment trusts to be shunned by advisers in favour of open-ended alternatives; a situation that is finally on the brink of change. Trusts are, after all, just another form of collective investment vehicle that pools resources, spreads risk and utilises the skills of experienced and professional managers that aim to provide investors with a healthy return. Compounding this strange scenario is a powerful counter-argument: performance. In like-for-like comparisons with open-ended vehicles, for the most part, investment trusts outperform over a longer ti...

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