The Association of Investment Trust companies has had a busy past 48 hours after launching a new web...
The Association of Investment Trust companies has had a busy past 48 hours after launching a new website for splits investors and lobbying for VAT exemptions on management fees for investment trusts in line with unit trusts and OEICS.
The AITC has already signalled its intent to set up a £10m charity fund to help retail investors stung by the failures of the split capita investment trust sector, and now it has added a new website that provides breakdowns of holdings and other relevant information.
will use Fundamental Data and additional sponsorship from the AITC and Aberdeen Asset Managers to meet a significant criticism of the sector: the perceived lack of information to make informed investment decisions.
Besides general information such as holdings, investors will get updates on risk statistics and other analytics, and the site is also designed to be used by fund managers and administrators to speed up the flow of information.
Also improving the wider investment trust industry's standing would be a cut to the VAT charges currently applied to management fees.
At 17.5%, it means that even where management fees are lower than for equivalent unit trusts or OEICS, the final bill for the customer can be equal or greater, creating false cost comparisons, the AITCS says.
That difference becomes all the more important, the AITC says, when considering the pressures on all investment companies to deal with 1% cost rules and proposed suites of simplified products.
The Treasury currently brings in about £40m annually from the VAT bill on investment trust managers, the association adds.
'Truly making a difference'
Avoidance, evasion and non-compliance
From 6 April 2019
Marcus Brookes appointed CIO