Charge cap "no problem" for many investment trusts

Some two-thirds of 215 trusts researched offer TERs below 1.5%, evidence of the competitiveness in the sector brought about by the structure of independent boards, the AITC says. ”Even with a 1% charge cap, many investment trusts would have been able to meet that,” a spokeswoman for the AITC says. Ensuring low expenses is even more important where returns from stock markets have fallen to single digits, the association adds. Annual expenses may rise higher than published TERs if additional performance-related fees are included. This affects slightly less than half the 215 trust...