A closed-ended fund, or investment trust, is a limited company listed on the stockmarket. It has a corporate structure, with an independent board who appoint the fund manager. Its shares are traded on the stockmarket. Someone who wishes to invest, buys shares from an investor who wishes to sell, while someone who wishes to sell can do so only if there is a willing buyer.
One of the timeless truths about investment is that retail investors arrive too late in a market rally.
Over decades of investing, I have often witnessed investors leaving markets at the point of maximum opportunity, for example, during the global financial crisis, and now it looks as though UK investors are avoiding the opportunity offered to them by Brexit.
As the stockmarket’s super-speedy growth hares roll over, something small, with a dark shape and domed top, is slowly approaching – a tortoise. Finally, it looks as if all the forgotten “tortoise stocks” that investors gave up on years ago, have started catching up as market conditions change.