2
Better performance
It is not well-known that investment trusts have tended to perform better than unit trusts and their benchmarks. A key reason for this has been their cheaper fees which have made a significant difference to returns over time, performance always being calculated net of costs. Further reasons include their closed-ended structure which has proved to be conducive to the better management of assets, as well as their ability to ‘gear’ or ‘leverage’ the portfolio.
With open-ended funds dominating the retail market, investors would have been forgiven for thinking that unit trusts and open-ended investment companies (OEICs) were the best collective investment vehicles around. They are of course wrong. But investment trusts have also ...
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