Could investment trusts be about to lose their edge?

Investment trusts have vastly outperformed their unit trust peers in the past. But they're going to have to work a lot harder to keep that up, says Merryn Somerset Webb.

A fascinating piece arrives on the difference in performance between investment trusts and unit trusts run by the same managers. FE TrustNet and Investment Week have analysed the returns made by high-profile managers who run two portfolios with similar mandates, and which have had similar top ten holdings over a period of five years.

There were 17 of them. And 15 of those did better with their investment trust than their OEIC (only Nick Train and Matthew Dobbs of Schroders got it the other way around).

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.