Investments trusts aren't all good – here's one to avoid

Here at MoneyWeek we often sing the praises of investment trusts over unit trusts, in part because they have much lower costs. But that's not always the case, as this offering from Blackrock shows.

In my editor's letter this week (out tomorrow for subscribers) I've suggested a few of my favourite investment trusts, with a view to creating a model portfolio for readers over the next few weeks.

There are a good many reasons why I prefer investment trusts over unit trusts (cost, performance, gearing, easier to manage cash flow, etc). But that doesn't mean that the entire sector is managed by saints with only the interests of the retail investor at heart. Far from it.

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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.