Big generalist international investment trusts have been forced to change due to the demanding nature of investors, says iimia chief investment officer Nick Greenwood.
At MM Live, Greenwood said many investment trusts have “died a death by 1,000 cuts”, with the split-capital debacle still deterring many investors from the sector.
He said: “The trust sector is changing dramatically as more institutions are searching for more specialist components and moving away from the traditional balanced approach.”
Greenwood said: “A number of them are making changes. Alliance Trust, for example, has now evolved into a company with a savings plan and a self-invested personal pension provider while Witan has moved itself into the multi-manager market.
“The problem with this is that there are a number of established competitors there. The market is performing well but it is a case of natural selection and evolving to ensure they are not left behind.”