Small Talk: Volume may be a problem for investment trusts

The investment-trust industry, which has long been the poor relation of open-ended funds such as unit trusts, is rubbing its hands with glee at the prospect of the retail distribution review. The regulatory shake-up of financial advice, which takes effect on 1 January, will ban providers from paying commissions to advisers who recommend their products to clients. Investment trusts, as quoted companies, have never been able to do this and blame commission bias for the fact financial advisers neglected the sector in favour of open-ended funds.

There is, however, a flaw in the theory that RDR will prompt a major return to favour for investment trusts. A number of intermediaries are warning that many funds are not liquid enough for them to be able to deal in the quantities they are used to trading – and that they may have to steer clear for this reason.

A new report from the Association of Investment Companies, the investment trust trade body, warns that its members will have to deal with this issue – particularly the industry's many small, specialist trusts where liquidity is more likely to be an issue. "Most self-directed investors and IFAs will have little difficulty getting the shares they want," says AIC director-general Ian Sayers. "For institutions and wealth managers, which are dealing in much larger volumes, the picture may be different."

Taking AIM: Rangers' float is alternative. But will it attract punters?

Rangers may have been banished to the lowliest division of Scottish professional football after its financial collapse last year, but it is about to rejoin archrivals Celtic in one league. The football club makes its debut on the Alternative Investment Market on Wednesday, after an IPO process to raise up to £27m. The retail element of that process, which seeks £10m, ends tomorrow. Football clubs have almost all proved hopeless stock market investments, but Rangers has already attracted support from an impressive range of institutions. The club's advisers point out that it will begin trading with a market capitalisation of just £50m, despite having no debt (courtesy of its administration), cash in the bank of £50m and wholly owned assets such as its Ibrox stadium.

The counter-argument is that to compete once again, Rangers will have to spend big money on players. It has a global fanbase of around 5 million and it owns its own TV rights but that may not be enough to convince investors.

Small businessman of the week: James Uffindell, founder, Job Bounties

The interesting thing about recruitment in this country is that it's one of the last industries to be fundamentally changed by the internet. It's still far too expensive to recruit. Also, this should be a referral-based market. People who come to a job through some sort of referral tend to stay in it for much longer.

"Having worked in recruitment and studied economics, it occurred to me that there really ought to be a market price for each job, a price the recruiter is prepared to pay to get the post filled. And if someone is able to help you fill that job, they should be financially rewarded. That's the theory on which Job Bounties is based. Employers post vacancies on the website and offer a fee for filling them. If you refer someone for a job and they take it, you get the fee. We make our money by taking an equivalent bounty from the employer when the new employee starts. We launched this year and the initial signs are promising."

Suggested Topics
Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?