One of the key attractions of closed-ended funds is – in our biased view – the role of the board. Investment trust boards wield the power to overhaul the investment strategy, hire and fire investment managers, and negotiate commercial terms with these managers. It is fair to say the environment for active managers is becoming more competitive, with the rise of passive funds, of actively managed/specialist ETFs and easier access to open-ended funds via online platforms. This week's announcement of the merger of Scottish Investment trust into JPMorgan Global Growth & Income is the latest in a number of high-profile manager changes. We set out to see whether there is evidence of an uptick in activity by boards in recent years, including the changes of manager. We examine fees, manager and mandate changes and find some evidence activism is on the rise.
