AIC chief executive Ian Sayers echoed the same message and said the FCA should “look beyond the issues facing open-ended funds”.
He said: “Greater use of investment companies has the potential to increase competition because they offer a genuine alternative to open-ended funds.”
Mike Wilson, head of investment trust sales at Henderson Global Investors, said the key issue behind investment companies failure to capture the imagination of investors was in a lack of education of how they work.
He said training supplied by AIC is a great help for informing investors, particularly IFAs who rarely use investment trusts adding anything that can be done to “demystify” them at all levels is a good thing that should be supported.
“It’s horses for courses, they are different vehicles to open-ended funds and they are used in a different way. People do not use close-ended funds because in a lot of cases they are not familiar with them, or they have a perception that they are difficult to understand, which they’re not,” Wilson added.
