Across the board

What sets investment trusts apart from their open-ended peers?

Any investment vehicle, whether open- or closed-ended, should be aiming to increase the wealth of its investors, whether in terms of capital, income or a combination of both. What sets closed-ended investments like investment trusts apart from their open-ended peers, however, is the presence of an independent board of directors to ensure this happens. Whereas an open-ended fund is effectively run by the management company, the guiding force behind an investment trust is its board. The board sets the overall strategy and objectives of the trust, including the investment policy, the types ...