With the RDR casting a cloud over the industry, Stephen Peters of Charles Stanley looks at what the review will mean for investment trusts.
Investment trusts have been much heralded of late as having the potential for a renaissance under the Retail Distribution Review. The basic and well-known argument goes that as financial advisers will no longer be remunerated by commission paid by open ended funds, and will be required by the regulators to consider all investment options, the often better performing and cheaper investment trust sector will see significant capital inflows. This will be aided by the addition of investment trusts on to fund platforms, something that should be seen in 2011. The contrasting argument is tha...
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