Active saviours

Better governance is needed to get the investment trust industry back on its feet, writes Simon Westlake of City of London Investment Management

The investment trust industry has struggled to defend effectively its share of the domestic savings market. Given the increasing threat posed by ETFs, and the potential opportunities presented by developments like RDR, better governance is needed to get the industry back on its feet. Investment trust boards need to take responsibility for reducing the tracking discrepancies shareholders suffer as a result of weak discount control. Historically boards have been reluctant to act unilaterally and large shareholders, such as City of London Investment Management, have needed to be part of the...