Investment trust launches dwindle in 2011

IMA figures show net inflows drop to levels last seen at height of crisis, with just five trusts launched this year compared to 15 in 2010.

Both the open-ended and closed-ended fund spaces have seen new launches and inflows fall off a cliff this year as investors shy away from volatile markets. Last week, the Investment Management Association’s latest figures showed net sales into open-ended funds have fallen to their lowest level since the height of the financial crisis. Overall net inflows stood at £568m in September, the lowest since October 2008, making Q3 the slowest quarter in terms of sales since the third quarter of 2008. The investment trust industry has also suffered from a lack of new capital this year....