Investment trusts: Surge in demand masks a bigger problem

A surge in demand post-RDR makes for positive headlines, but it also masks a bigger problem

Investor demand for closed-ended vehicles is rising but gaining access is still not as straightforward as it should be, writes Winterflood Business Services' Helen Oxley.

According to a recent report from the Association of Investment Companies (AIC), adviser purchases of investment companies on adviser platforms have more than doubled since the Retail Distribution Review (RDR). Meanwhile, we have seen Neil Woodford's Patient Capital trust raise £800m through its IPO with strong support from leading platforms. These are positive developments in terms of widening the asset universe. However, the surge in demand masks a fundamental problem: despite RDR heralding a level playing field, in reality investment trusts have yet to be widely adopted by advisers. W...