The firm said that although in theory closed-end funds should benefit from independent financial advisers having to demonstrate a "whole of market" approach after 31 December, this will not necessarily lead to an increase in demand.
"Significant obstacles still remain, including whether advisers may simply choose to ignore investment trusts and drop the independent label and instead opt to offer restricted advice.
"In addition there is a fundamental problem with access. Platforms are now the key method used by advisers to invest client money and investment trusts are currently at a major disadvantage," Winterflood said.
The firm said 60% of advisers use one of three major platforms: Cofunds, Skandia and Fidelity – all of which do not currently offer comprehensive access to investment trusts, it added.
"This is not likely to change materially before the advent of RDR. Some platforms have stated that they will not add investment trusts as there is not sufficient demand. However this seems to be a classic ‘chicken and egg’ situation. If advisers are faced with difficulty in accessing investment trusts then demand is likely to remain low."
Another factor often cited as an obstacle to growing the assets of the closed-end sector is liquidity. But Winterflood said around 22% of the investment trust universe is either trading on a premium or close to NAV, which allows for further issuance.
It concluded: "As the situation stands we do not expect there to be a deluge of assets flowing into the IT sector on 1 January, as although there has been progress, much remains to be done in terms of access, education and disclosure. However, we remain positive about the levelling of the playing field and can envisage investment trusts slowly growing in popularity as RDR beds down."
