Investment bank and brokerage Stifel has called for more transparency on individual transactions to relieve concerns that investment trusts are being used for "asset dropping".
In a research note, Stifel said transparency "is the best tool" and factors such as transaction price, rationale and independent valuation opinions should be included as part of any individual transaction. Liontrust's Michaelis on ESG trust: 'There are very few trusts out there with similar offerings' According to Stifel, the purchasing of assets from affiliated companies is becoming increasingly common for listed funds, with recent transactions by Gresham House Energy and Round Hill Music cited as examples. The research report added: "We would welcome information such as the selli...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes