The matter has been “the most important but misunderstood issue affecting the sector over the last couple of years”, according to Richard Parfect, portfolio manager at Momentum Global Investment Management, and stems from two pieces of European Union-derived regulation.
Investment trusts are subject to the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation and the Markets in Financial Instruments Directive (MiFID), both adopted directly into UK law before Brexit and have led to investors being “misled” about the true cost of investing in closed-ended products, ac…
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