F&C: Why we opted for a US investment trust over an OEIC

F&C Investments said its decision to launch a US investment trust instead of an open-ended fund has been largely driven by the vehicles' capability to retain a fixed pool of assets.

Last month, F&C announced its intention to launch the F&C Barrow Hanley US trust, managed by one of America’s largest active managers of domestic equities. The trust will be a new addition to its 14-strong closed-ended range. Ed Morse, who heads up the group’s investment trust business, said given the macroeconomic headwinds and persistent volatility disrupting markets, the ability to retain assets and focus on long-term performance has become more important. He added fragile market sentiment is currently resulting in open-ended funds becoming more vulnerable to redemptions, which c...