Trust sector's low cost reputation 'no longer a given' as fee pressures intensify

Investment trust fees have come under fresh scrutiny in recent months, with a number of managers reducing costs or introducing new charging structures in a bid to stay competitive with open-ended peers.

However, new analysis of 51 directly comparable investment companies and open-ended funds has revealed under half of closed-ended vehicles have a lower ongoing charge, challenging the trust sector's reputation for being a more cost effective solution.  A report by analysts at Canaccord Genuity, entitled Adjusting to a world of lower numbers, shows just 45% of investment companies have a lower ongoing charge when compared to their open-ended counterparts, with the difference in fees in two-thirds of cases at less than 25 basis points (bps). The most expensive investment companies relat...