Numis Securities has warned the implementation of the retail distribution review could have a more mixed impact on the investment trust sector than some commentators suggest.
The RDR, due to come into effect at the end of 2012, is predicted to boost investment companies by allowing them an equal footing with other fund structures in the retail market.
Numis say this consolidation could impact on the demand from core buyers of investment companies.
Under the RDR, advisers will be asked to agree their own charges directly with the customers, rather than automatically having a deduction from the fund in the form of commission set up by providers.
As most investment trust providers do not offer trail commission, investment trusts have hitherto received little attention from financial advisers who accept commission.
However, Numis says advisers are unlikely to start recommending investment companies. The perceived complexity of the structure will remain a strong deterrent, it says.
Advisers may find that investment trusts are only liquid enough for their needs if the trusts embark on new share issues, Numis says.
The main benefits of RDR are likely to be indirect, such as through the transfer of portfolio management responsibilities from advisers to asset managers, says Numis.