1) More reliable income – The income you receive may be more reliable than open-ended funds because investment trusts are able to reserve up to 15% of the dividends received from underlying holdings, usually in times of economic prosperity, and use this to help continue paying-out income if times get harder and dividends become less fruitful.
2) Independent board – Investment trusts have an independent board whose job it is to keep an eye on the fund manager’s performance and ensure they’re keeping in-line with the investment mandate, supporting or challenging them where necessary.
3) Gearing – Investment trusts can gear – or borrow extra money – which can significantly add to performance if skilfully deployed in rising markets, although being a double-edged sword it can enhance loses in falling markets.