Investment Trust 'weakness' in short-term, says AITC chairman

Liquidity, discounts and volatility of discounts are chief reasons why investment trusts “are not necessarily particularly suitable investment vehicles for short-term investors,” Hammond-Chambers says. ”OEICs and unit trusts suit certain types of investors, hedge funds suit others and on the horizon are REITs.” However, he also believes that investment trusts as an asset class for long-term savings will have a renewed role to play as of next year, when the first of the so-called Baby-Boomer generation start to retire. Emphasis in investing will switch to income from capital growth,...