But investments trusts have experienced growth over the past few years, according to the Lang Cat, as the £822.5m Smithson Investment Trust (the biggest ever) launched and investment trust assets passed £200bn for the first time after doubling over the last six years.
On top of this, the report stated the future could look brighter for investment trusts.
Besides, Product Intervention and Product Governance Sourcebook regulation (PROD) introduced by the FCA could lean advisers into trusts more, according to the Lang Cat.
The report stated: “PROD could be the great counterbalance. Advisers must evidence suitability of products and investment services by client segment.
“We have yet to see how the FCA will enforce the regulation, but it may prompt some reflection from advisers. Can they really claim to be meeting the needs of all clients without a consideration of investment companies?”