The case for investment trusts

James Budden, head of investment trusts at Baillie Gifford, explains why advisers should consider the virtues of investment trusts. Lawrence Gosling reports.

The debate about the true cost of active fund management is back at the top of the news agenda again with the ongoing publication of the fees paid by fund management groups. The total costing of investing in an area where the investment trust industry has a number of major advantage, according to James Budden, head of investment trusts at Baillie Gifford. He says: “There is a polarisation between the active and passive investment industries and investors are asking whether it is right to be charged active fees for a portfolio which in reality is only quasi-active. They are saying, and...