Big take up in investment trusts

There has been a big take up of investment trusts as the impact of the retail distribution review hits, Pascal Dowling has said.

The head of publishing at FE Trustnet said: “As RDR approached, the investment trust industry upped its game when it came to marketing these products, and strong performances from the likes of Lindsell Train, Fidelity, and Edinburgh have supported those efforts.”

Research by FE Trustnet, Schroders and content distributor Dianomi has shown an appetite for investment trusts within Isas – with two-thirds of investors putting the same amount or more than last year into investment trusts during the latest Isa season.

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In the study, 50 per cent of respondents said they had invested the same, while 19 per cent had put more into closed-ended vehicles.

A quarter said they were new to investment trusts, having made their first investment in the past five years, while 50 per cent of those who hold investment trusts have made a new investment in the last three months.

The survey also showed that individual investments made into investment trusts this year were significantly greater than into any other product.


Neil Mayfield, director of Somerset-based Mayfield Investment Management, said: “RDR may have been a factor but also wider knowledge of available products. There is also the view that they have lower costs, and is part of downward trend of reducing costs on fund management and platform charges.”