21/05/2025
As the UK Investment Trusts Study (UKITS) celebrates its 10th year, one thing is clear: the way investors engage with information has changed—and asset managers need to keep up.
What’s in a Name? Depends Who You Ask
Ask Google or ChatGPT what “SABA” means, and you’ll hear about a soft morning breeze. Ask an investment trust expert, and you’ll get a very different answer. That contrast highlights a bigger issue: the gap between how information is shared and how it’s understood in the investment world.
A Decade of Change
UKITS has tracked major shifts—from record-breaking discounts to leadership shakeups. But the biggest transformation? How and where investors make decisions. In 2024, UKITS Wave 9 revealed that communication styles must evolve to match modern investor behaviour—especially in a world where AI can explain complex financial terms in seconds.
The Ageing Investor
Today’s typical investment trust holder is older, male, and financially savvy. In 2015, most were aged 55–64. Now, they’re 65–74. Retirement planning is a bigger driver than ever. While more women are investing, the average age continues to rise and closing the gap between younger investors and older investors is key.
Younger investors aren’t connecting with traditional messaging. They want simplicity, clarity, and relevance—not jargon. They’re more drawn to passive investing, so if active managers want to win them over, they need to make their case in plain language.
The Recommenders’ Dilemma
Discretionary Fund Managers (DFMs) face their own challenges. Explaining the value of investment trusts to younger, cost-conscious clients is tough—especially in a more regulated, time-pressured environment.
Still, there’s progress. In 2015, firms held an average of 14 investment trusts. By 2024, that number had nearly doubled to 26. Wide discounts offer strong entry points, but the key is communicating value clearly and quickly.
Tech Disruption: A Double-Edged Sword
Technology has revolutionized investing. Platforms dominate, and information is everywhere. But with so much content, investors often feel overwhelmed. They start broad but end up relying on trusted sources—like Reddit—for clarity.
DFMs, too, are drowning in data. That’s why they’re craving more direct, human interaction with fund managers. And it’s working: more investors and DFMs attended AGMs in 2024 than ever before, thanks to online access and engaging formats like infographics and short-form content.
The Bottom Line: Make It Easy, Make It Matter
Investment trusts offer real value—diversification, growth, income—but younger investors and DFMs need to see that clearly. The future belongs to those who can tell a compelling story, fast.
The message is simple: cut the complexity, embrace modern communication, and meet investors where they are.
