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

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...