Canaccord: Peter Hargreaves was right about IT 'fuddy duddies'

Canaccord Genuity has criticised 'complacent' investment trust boards in a new report, suggesting they must modernise if they are to compete effectively in the funds market.

Referencing HL founder Peter Hargreaves' famous comments that investment trusts are run by "fuddy duddies", the broker said it has some sympathy with his view. Canaccord urged boards to become more creative in the way they tackle underperformance: "We believe a near six-year bull market has bred pockets of complacency." "There are too many sub-scale companies, while a number are adding little value or charging active fees for closet tracking. However, boards of these companies seem intent on taking the easy option and maintaining the status quo. "We would welcome greater creativity...