Investment trusts outperform sister funds over 75% of the time - AJ Bell

'Alarming' performance differential

clock • 1 min read

Investment trusts have outperformed their sister open-ended funds more than three-quarters of the time over the last decade, though are much more volatile, research from investment platform AJ Bell shows.

Over a ten-year period, investment companies have beaten funds run by the same investment management team 77% of the time, outperforming over one year 74% of the time. In some cases, investors could have made almost twice as much cash over ten years by investing into the close-ended version of a strategy than the open-ended version. In addition, the trust was the cheaper way to access the strategy 31% of the time, with the fund being cheaper 15% of the time. However, for some investors, caution would be warranted, as 89% of the time the investment trust option was the more volatile...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment Trusts

FCA and government lift investment trust cost disclosure requirements as they plan reforms

FCA and government lift investment trust cost disclosure requirements as they plan reforms

Legislation will be laid ‘as soon as possible’

Cristian Angeloni
clock 19 September 2024 • 2 min read
Investment trust sector rejoices 'seismic' changes to cost disclosure rules ending 'years of pain'

Investment trust sector rejoices 'seismic' changes to cost disclosure rules ending 'years of pain'

A year after first called for in parliament

Eve Maddock-Jones
clock 19 September 2024 • 4 min read
Witan merges with Alliance Trust to form £5bn investment trust

Witan merges with Alliance Trust to form £5bn investment trust

UK’s largest investment trust merger announced

Jenna Brown
clock 26 June 2024 • 1 min read