The inclusion of investment trusts is essential in structuring a portfolio for income and/or growth. Because:
- They are far less expensive to manage than unit trusts/OEICS
- Many trade at a discount to NAV.
- Discounts mean that dividend yields can be higher.
- Performance is often better for a number of reasons, including lower charges and wider strategies.
- They are more versatile and offer different tax structures.
We believe that the acceptance of a blinkered approach to investing is coming to an end and client expectations are becoming much more demanding.