Investment trusts: How a surge in demand masks a bigger problem

A surge in demand post-RDR makes for positive headlines, but it also masks a bigger problem

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Demand for investment trusts is on the up and accelerating but, writes Helen Oxley, getting hold of them on behalf of clients still isn't as straightforward as it should be...

Investment trusts are on the rise. According to a recent report from the Association of Investment Companies (AIC), adviser purchases of investment companies on adviser platforms have more than doubled since the Retail Distribution Review (RDR). Meanwhile, we have seen Neil Woodford's Patient Capital trust raise £800m through its IPO with strong support from leading platforms. These are positive developments in terms of widening the asset universe. However, the surge in demand masks a fundamental problem: despite RDR heralding a level playing field, in reality investment trusts have y...

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