Morningstar slams ‘secretive' investment trusts

Morningstar's closed-ended fund strategist Mike Taggart believes investors will continue to largely shun "secretive" investment trusts until they improve transparency.

Speaking at a Morningstar Investment Conference last week, Taggart said a number of investment trusts did not disclose their stock holdings over a year, warning this opacity will mean IFAs continued to ignore the sector post-RDR. He said the increasing popularity of ETFs will also make it difficult for investment trusts to come back into the limelight after being overshadowed for decades by open-ended funds. “The main headwind the closed-ended sector faces is the overwhelming lack of transparency,” said Taggart. “There are a number of trusts that do not reveal what their holding...