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Haig Bathgate: the obscure world of investment trust IPOs

by Haig Bathgate on Mar 28, 2014 at 10:39

In summary, I would like a fee that is linked to the service I am receiving and is broken down so I know exactly what I am paying for.

If my objections sound vaguely familiar it’s because they are: a more accountable and easily understandable process is at the heart of the retail distribution review (RDR).

Transparency is key

As an industry, we quite rightly insist that in our dealings with clients we charge a monetary amount that clearly and transparently covers the services we are offering.

This regulatory change was not about making the industry less profitable, but ensuring it is in the best possible position to operate efficiently and serve clients effectively.

There is no point in a clear and transparent process for clients operating alongside a system that is not clear for companies dealing with each other, especially when those companies are the agents of those clients.

So my criticism is measured.

Investment trusts broadly have a great deal to offer customers.

Show me a new investment trust with good prospects, a good manager and a clear, value-for-money fee structure, and there is a good chance I will buy into it.

Haig Bathgate is former Wealth Manager cover star and serves as chief investment officer at Turcan Connell.

not necessarily make it a good idea to charge them that.

I have no problem with people and businesses getting well paid to do a good job. The brokers who oversee the IPOs have to work hard to build up a list of potential investors and organise the marketing of these investments.

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1 comment so far. Why not have your say?

Anonymous 1 needed this 'off the record'

Mar 28, 2014 at 15:36

He is spot on in all his arguments. The issue expenses should be paid for by the investment manager.. that said lots of issues are getting away and investors (mainly private client stockbrokers / discretionary managers) seem happy to pay the fees... history tells us that no fund stays at a premium.. maybe the infrastructure funds will prove its "different this time".

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