Stephen Peters, analyst at Charles Stanley, says the boards of investment trusts need to change the way they work to make better use of investment opportunities.
One of the main differences between an open-ended fund and an investment trust is the existence of an independent board of directors. This board is meant to act in the best interest of all shareholders in the trust, and ensure the fund manager fully accounts for all the decisions being made. The importance of this function cannot be overstated. But, as an investor in the sector, I have some serious reservations about whether investment trust boards are working as well as they should. Many boards should be given credit for cutting fees charged on their investment trusts over the last y...
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