Avios air miles scheme to close: But will you lose out or be better off? Big energy firms including British Gas to bump up prices for millions of households – it’s time to fight back! Want to buy breakfast with gold? Dunedin enterprise investment trust share price trusts deliver strong performance combined with low fees, yet remain a little explored opportunity for many investors.
Their lower level of popularity comes as many investors find themselves pushed into funds instead, thanks to the lucrative commission the latter pays advisers. This means personal investors are missing out on some great opportunities that many fund managers themselves choose to invest in. In a recent paper on the case for investment trusts, JP Morgan Asset Management looked at the shareholder register of the 21 trusts it runs and found that the dominant group were the client nominee accounts of private asset managers and specialist institutional investors. It said: ‘In other words, investment trusts are repeatedly the chosen investment vehicle of highly-experienced financial professionals. So where can those curious about the world of investment trusts start? Like X Factor contestants, investment trusts come in all shapes and sizes and it is important to decide which ones are the most suitable to be awarded your vote. And unlike the fleeting starbursts of success enjoyed by some of the one-hit wonders that emerge from TV reality shows, a well-chosen investment trust can provide you with a winner, over a period of years if not for life.
What the City veterans are getting at here is that the investing public is bombarded by advertisements and mail shots about the vast universe of open-ended funds, i. OEICs, which tend to have large marketing budgets. The diversified managed fund, though a simple and brilliant idea, still had to be invented by someone. C trust continues to trade in 2011, with over 130,000 private investors, many of whom, together with their families, have stayed aboard for decades if not generations. But people typically have to do a bit of work themselves to discover the advantages of the much more introvert investment trust world. The fact is, investment trusts don’t advertise anything like so much because, as so-called closed-end funds, they have a fixed number of shares in issue. Therefore, the argument goes, if you are inviting one person to buy then you are also asking someone else to sell.
Those who take the time to research the fascinating but understated investment trust sector are unlikely to regret it. In fact, delve a little deeper and ask a few pointed questions and you will find that many fund management professionals put their own money into investment trusts as the vehicle of choice. A way of gaining prudent exposure to stock exchange investment – and categorically without putting all their eggs in one basket. A means of gaining access to worthwhile medium or longer term potential returns without feeling the need to be constantly checking stock prices to keep their stress levels down.