Ivan Sedgwick comments on the FT’s article on specialist investment trusts from this weekend:
At LGB, we have certainly found some of these funds useful as a way of accessing parts of the market that are otherwise inaccessible. Closed-end funds have advantages in that they do not suffer from liquidity constraints in the same way as other mutual funds do. On the other hand, they can trade on discounts when the sector they invest in moves out of fashion or if they fail to perform. Furthermore, they do not offer EIS benefits but are still definitely a worthwhile tool for diversification.
Read the full piece online here.
