Numis Securities predicts established equity income investment trusts will be the main beneficiaries of RDR when it is implemented next January.
The broker does not expect the benefits of RDR to be spread evenly across the closed-ended sector, but said larger trusts will be at an advantage. Charles Cade, an analyst at the group, said income trusts with proven track records will be used more by IFAs and intermediaries once trail commission is abolished. However, he warned there will not be a level playing field between OEICs and investment trusts until platforms offer closed-ended vehicles. “The likes of Neil Woodford’s Edinburgh investment trust, Murray International, City of London, and Temple Bar, which have strong long-ter...
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