Fund research and ratings group RSMR has added investment trusts to its Research Hub in response to a hike in demand from advisers wanting more information on the products.
The company added its list of rated investment trusts and factsheets, along with a market insight guide, to its Research Hub, where advisers can access ratings, guides and opinions.
The ratings provide advisers with analysis of a variety of investment trusts to help them select those best suited to their clients’ needs.
Geoff Mills, director of RSMR, said this fresh offering is a response to the adviser community, “who have expressed an increased demand for further information and clarification on which investment trusts to use”.
He said: “Investment trusts can be a complex area to navigate and by supplying the RSMR stamp of approval it is an easy way to determine which investment trusts have passed our rigorous criteria.”
RSMR looks at both quantitative and qualitative aspects including performance fees, liquidity, gearing, the fund management team and the investment process when rating an investment trust.
The guide to investment trusts also provides further detail on the market overall and explains the key areas that advisers should be considering.
Mr Mills said: “With the continuing regulatory focus on robust due diligence we want to ensure that the 20,000 plus advisers that use our Research Hub have access to a list of rated investment trusts.”
Currently there are 24 investment trusts that have been rated.
Frances Kemp, IFA from Norwich-based Nurture Financial Planning, said: “I think this is fantastic because it is very difficult to get comparable information on those funds because a lot of them are unclassified.”
She described comparing investment trusts like comparing “apples with pears” and said any kind of centralised research will help make them more accessible.
Ms Kemp said: “We have got quite strict criteria that our firms have to meet, and so we might dismiss investment trusts altogether unless they form part of a wider proposition.
“The more research hubs become available and the more they are known about then I think investment trusts will be used more.”
katherine.denham@ft.com
