Keep Calm and Issue Shares

Investment trusts have already issued over £150 million in new shares in 2013 to meet high investor demand

Jackie Beard, FCSI 15 February, 2013 | 7:00AM
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Since the beginning of 2013, investment trusts have issued some £156 million in new shares, allowing new investors to claim a stake in highly sought-after trusts and allowing long-time investors a chance to put more money into their favourite funds.

This wave of new issuance came predominantly from funds where shares have been trading at a premium to their net asset value.

Some may be led to believe that the money surging into investment trusts is a direct result of the new Retail Distribution Review. They may believe that the new RDR rules, which were implemented on January 1, 2013, immediately raised awareness about the benefits of investment trusts amongst the investing public. But this is less about the introduction of RDR and more a result of solid management delivering good performance.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
European Opportunities Trust833.01 GBP0.36Rating
Murray International Ord1,110.00 GBP0.18Rating
Personal Assets Ord49,650.81 GBP0.41Rating
Trojan O Acc389.93 GBP0.56Rating

About Author

Jackie Beard, FCSI

Jackie Beard, FCSI  is Director of Manager Research Services, Morningstar EMEA