How Investment Trusts are Innovating for Profit

ASK THE EXPERT: Investment trust boards are very good at listening to their shareholders and they’re not afraid to ask them exactly what they want

Jackie Beard, FCSI 3 June, 2014 | 12:27AM

Investment trusts may be old in structure, but it doesn’t mean they’re resistant to change. One of their key positives is their ability to innovate and change to retain their relevance for today’s investors. We’ve seen a handful of funds do this recently, in different ways, and it proves the value and experience that an independent board of directors can add.

There’s no fear of change among investment trust boards

Investment trust boards are very good at listening to their shareholders and they’re not afraid to ask them exactly what they want. No matter if it doesn’t fit with an asset management firm’s fund line-up, or that it’s not part of that firm’s long-term strategic planning.  For them there’s always an alternative and if necessary a new manager can be brought in.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aberdeen Diversified Income & Growth Ord91.40 GBX-0.65
Aberdeen Japan Ord637.50 GBX-0.78
Alliance Trust Ord791.00 GBX-0.38
Hansa Trust Ord160.00 GBX0.31

About Author

Jackie Beard, FCSI

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

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