Jackie Beard, director of closed-end fund research at Morningstar, says more trusts need to follow the recent trend of scrapping or reducing performance fees.
Until the arrival of the RDR, investment trusts were often heralded for being a cheaper investment than their open-ended peers, albeit not in every case. With the RDR has come a greater focus on fees across all fund structures. It is no surprise we are seeing the price advantage often found in investment trusts erode away, as firms have started to launch clean share classes resulting in lower headline fees. However, it is not just OEIC fee structures asset managers are tinkering with. There have been a number of changes made at investment trusts too, particularly with regards to per...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
