- Investment trusts have broadly outperformed in the long term
- Discounts remain in some of the most attractive sectors
We often tout the benefits of the closed-ended nature of investment trusts over their open-ended siblings, but it's only by looking at the data that you can know if their structural differences have played to their advantage.
Conventional wisdom says that smaller companies funds – across both open and closed-end funds – should have more of an advantage over their benchmarks than their large-cap peers because they operate in less well-researched areas of the market. And investment trusts have the additional benefit of being able to invest in less liquid stocks without the possibility of being faced with a slew of redemption requests, as is the risk with open-ended funds.