Numis issues caution over RDR headwinds

RDR may provide boost to investment trusts but the sector still faces headwinds, warns Numis Securities.

Numis Securities has warned the investment trust universe faces a number of headwinds in its attempt to compete with open-ended rivals. The group said although RDR will provide a boost to the sector, with the elimination of trail fees, it will not necessarily make closed-ended vehicles more appealing to IFAs and multi-managers. Charles Cade, an analyst at the group, said the industry’s move towards model client portfolios will see investment trusts at a disadvantage due to their lower levels of liquidity. “The downside for investment companies is industry consolidation, and the mov...