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Equity investment trusts offer tender treatment to investors

More trusts have adopted performance-linked measures, but they are likely to remain in the minority
Equity investment trusts offer tender treatment to investors
  • Last year saw equity trusts attempt to reassure shareholders about performance risks
  • Yet some of these measures, such as performance-linked tender offers, are still far from common

If last year’s frenzy of investment trust fundraising largely focused on alternative asset classes, the old guard is not going out without a fight. Equity trusts still account for a significant share of the investment trust world, with more than 25 of the Association of Investment Companies’ (AIC) sectors focusing predominantly on portfolios of shares.

With competition from both passives and open-ended active funds refusing to go away, such names have had to adapt. From underperforming funds such as Scottish Investment Trust (SCIN) merging with peers to other measures, a good deal of last year’s corporate activity involved existing trusts adapting to investor demand.

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