LONDON - Now arriving at platforms: how advisers can invest in investment trusts

Jul 16, 2012

Fifth paper from J.P. Morgan Asset Management focuses on accessibility  
 
LONDON 16 July 2012 – J.P. Morgan Asset Management, the largest manager of investment trusts in the UK, has launched the fifth paper from its Investment Trusts, Insight Series, specifically for financial advisers. As demand for investment trusts increases it is becoming easier for advisers to access them, and the latest paper from J.P. Morgan Asset Management looks at how to invest in the closed-ended vehicle.    
 
James Saunders Watson, Head of Marketing, Investment Trusts for J.P. Morgan Asset Management said: “It has never been easier for advisers to gain access to investment trusts; inclusion on investment platforms is improving as investors demand access and regulatory requirements drive change.  As implementation of the Retail Distribution Review approaches, advisers and investors alike may increasingly appreciate the benefits of investment trusts as part of their portfolios.  As access continues to improve the popularity of investment trusts is also seen to grow.”   
 
Three ways to invest: 
  • Through a fund manager’s Saving Scheme or Product Wrapper (e.g. ISA)
  • Through a Share Brokerage Service or Stockbroker
  • Through an Investment Platform (Fund Supermarket or Wrap)
 
The requirements of the RDR mean that investment trusts are not only becoming more readily available through platforms, but they are also increasingly being classified by their AIC sector or objective rather than lumped together under one heading of ‘Investment Companies’.  This will make identifying and researching different investment trust products simpler, again improving access to the trusts.  
 
David Barron, Head of Investment Trusts at J.P. Morgan Asset Management said, “We were pleased that the FSA’s finalised guidance stated very clearly that it believes it will be rare for a firm that uses a single platform for all its investment business to meet the standard for independence. Although the availability of investment trusts on the ‘big three’ fund supermarkets is still a little patchy, there are well over a dozen platforms where investment trusts are already accessible to advisers.”
 
David Barron added: “The classification of investment trusts by their AIC sectors or objectives is a welcome step forward to ensure investment trusts are viewed alongside other products in the retail market.  This improvement of visibility reflects the demand for these products from investors and simplifies the investment process for advisers when looking to invest in trusts.”
 
The fifth paper in the Investment Trusts, Insight Series can be found here www.jpmorgan.am/ITinsights.  It includes a table detailing the current and potential future availability of investment trusts on some of the major platforms used by advisers and private investors.
 
 

 
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Notes to Editors
About J.P. Morgan Asset Management
J.P. Morgan Asset Management is part of JPMorgan Chase & Co. and is a global asset management leader providing world-class investment solutions to clients. With US$1.4 trillion in assets under management (the Asset Management client funds of JP Morgan Chase & Co. as at 31 March 2012) and offices in 41 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.
 
J.P. Morgan Asset Management is a trading name of J.P. Morgan Asset Management Marketing Limited which has issued this material in the United Kingdom and which is authorised and regulated by the Financial Services Authority.  Registered in England No. 288553.  Registered office: 25 Bank Street, Canary Wharf, London E14 5JP.
 
Any past performance referred to in this material is not a guide to future performance and the value of investments, and any income from them, can fall as well as rise.  Any tax concessions referred to are not guaranteed and their value will depend on the individual circumstances of investors.  Stock market linked investments carry a number of inherent risks.  These risks will increase where fluctuations in exchange rates impact on the value of any underlying investments or where the investment is exposed to smaller companies or emerging markets.  Investments in fixed income securities that are not rated as investment grade represent a greater risk to an investor’s capital.
 
 

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