Selestia says more innovation is needed in the investment trust industry if trusts are to attract IFAs and increase business in the sector.
Head of investment marketing Graham Bentley, speaking at a Money Marketing investment trust round table last week, said investment trusts need to offer something that cannot be found elsewhere and pitch themselves as engineered products. He said with Ucits III, he is hard pressed to see what he can get from an investment trust that cannot come from an Oeic in terms of market exposure and populating asset classes.
Bentley said investment trusts need to offer a specific differentiator, such as a risk-return profile that he cannot get elsewhere and other “attempts to be clever”.
He said he only gets around one request a month from advisers wanting investment trusts put on the platform and if he had to prioritise he would rather have a fund of hedge fund capacity on the platform.
Bentley said: “There are a whole host of things that you could do to sell investment trusts as an engineered product. You make it do other things that are not able to be performed by another route to get more people to pay attention to it.”
But Charles Stanley William Barratt said “We deal with investment trusts as they are transparent and simple. Part of their beauty is the set stock the manager has, allowing them to be more nimble. It is good to deal with something that you know is going to stay a particular size.”