Join our community of smart investors

Cost disclosure reform could boost investment trusts

The government appears willing to step in and fix rules that disadvantage investment trusts
November 30, 2023
  • Current rules on cost disclosure are discouraging multi-asset managers from investing in the sector, campaigners have argued
  • The government has hinted at future regulatory changes to solve the issue 

A reform of the requirements to disclose costs could increase demand for investment trusts, potentially helping to narrow discounts to net asset value (NAV) in the sector.

As part of last week’s Autumn Statement, the government published documents on how it plans to replace the current European regulations on investment products for retail investors, the so-called PRIIPs Regulation, with its own set of rules. The documents raised hopes that the change would help solve an issue with investment trust costs, which has reportedly put multi-asset managers off investing in them.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in