Buy into infrastructure with investment trusts

Infrastructure projects are the 'investment story of the decade'. And from the US to the Sahara, investment trusts are the perfect way to tap into this booming scene.

How often do you buy investment trusts these days? Probably not as often as you did a few years ago. It used to be that those of us who objected to paying the absurd fees charged by most unit trusts (up to 5% up front followed by a good 1.5% a year in management fees) and who wanted easy access to diversified portfolios always bought investment trusts. We looked at them and we saw all sorts of advantages.

The management fees were more like 1% than 1.5% and, while we paid a spread when we bought and sold the shares in our chosen trusts, it rarely came in anywhere near the entry fees of the unit trusts. At the same time, it was good to know that investment trusts, as listed vehicles, mostly had good governance standards and that if we wanted to sell them we could do so any time the market was open it could take days to get your money when you sell a unit trust.

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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.