Investment trusts which fail to differentiate themselves from an OEIC and do not pull the levers closed-ended products have at hand risk entering the crosshairs of activist investors.
This is according to Baillie Gifford director of distribution and marketing James Budden who described the investment trust sector as "Darwinian in nature". Speaking at Baillie Gifford's Investment Conference last week (15 May), Budden addressed the perpetuating discounts many investment trusts, including those managed by Baillie Gifford, have been trading at for some time. "The presence of a discount can point to a trust in trouble, but it is not indicative of a crisis. Indeed, 90% of trusts currently trade at a discount," he argued. Earlier this year, seven UK investment trusts...
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