It may also be worth adding that a lot of Investment Management companies have a variety of strategies, in which they run in different wrappers available to investors to buy.
To give just one example of a strategy that retail investors can buy into in an Investment Trust / Mutual Fund(OEIC/ICVC/VCC) form:
Templeton Emerging Markets Investment Trust
Templeton Emerging Markets Fund A(acc)USD
- Investment Objective wording is near identical
Both are managed by Chetan Sehgal and Andrew Ness.
The Ongoing Charge for the Investment Trust is 0.98%, and 2% for the fund.
As you would expect with similar strategies in different wrappers from the same Investment Management team, the performance of both are very much aligned.
The Investment Trust performance is actually better, most likely because as above, its operational costs(Ongoing Charge), is 1% less per year.
To top it off - their performance in the Emerging Markets is not bad, in comparison to the Morningstar Benchmark:
And last of all, the icing on the cake, is that the Investment Trust is somehow trading in the market at a discount:
So if you were looking at the Templeton Emerging Markets Fund - why wouldn’t you buy their Investment Trust instead - cheaper fees, better performance, and it is trading at a 10% discount to its current NAV. The only concern with that may be that it has consistently traded at a discount to NAV, whereas the SICAV would trade at NAV.
That and 212 do not charge any platform fee for holding this trust!