Over a third (36%) of discretionary fund managers (DFMs) described themselves as “fans” of investment trusts, and prefer them to other types of investment.

This is according to the Association of Investment Companies (AIC) and Research in Finance.

The figure has risen by 2%, from 34% last year.

Over 30% of DFMs are expecting to write more investment trust business, with attractive discounts being the top reason (82%).

Other reasons for DFMs increasing investment trust business was strong performance of certain trusts (40%), increasing exposure to specialist assets (38%) and a more favourable view of investment trusts generally (38%).

AIC research director Nick Britton said: “At a time when centralised investment propositions are exerting more of a stranglehold on wealth managers’ investment decisions, it’s encouraging to see that many individuals are able to go off buy list in pursuit of attractive opportunities for their clients.

“Wide discounts are still by far the main reason that wealth managers are looking to increase their exposure to trusts, but this year we have seen that factor diminish in importance and other traditional advantages come to the fore, such as strong performance and access to alternative assets.”

Research in Finance CEO Toby Finden-Crofts added: “It is clear centralised buy lists are used extensively by wealth managers and discretionary fund managers. But to take advantage of the opportunity investment trusts offer, investors are increasingly using funds which sit outside of the buy lists.

“Our research shows that it’s not only the structural benefits of the products that are appealing but the access to some interesting and less accessible markets, such as private equity, infrastructure and renewables.”

In order to obtain these results, Research in Finance surveyed 157 DFMs. The research is funded by a consortium of asset managers and the AIC.

Recently, the Treasury and the Financial Conduct Authority announced cost disclosure requirements for investment trusts will be temporarily banned.

This announcement came after years of investment companies calling for change. These rules were inherited by the European Union (EU) and made it appear that investment trusts were more costly to put money into than they were.

The Treasury said it will lay out legislation to provide the FCA with the appropriate powers to deliver reform – the new Consumer Composite Investments (CCI) regime.

It said the new CCI regime will deliver more tailored and flexible rules to “address concerns across industry with current disclosure requirements, including for costs”.

The UK’s new retail disclosure regime is expected to be in place in the first half of 2025, subject to Parliamentary approval and following a consultation from the FCA.

The FCA intends to consult on proposed rules for the CCI regime this Autumn.

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The stories that matter on money and politics in the race for the White House

Donald Trump will vow to deliver a “new American industrialism” if he wins a second term in the White House, a bid to outflank Kamala Harris on manufacturing policy in the economic duel ahead of the November election.

At a rally in Savannah, Georgia, on Tuesday, the former president is set to promote his own version of a US industrial policy centred on a promise to cut taxes for companies that manufacture in America and impose tariffs on those that don’t.

According to a senior Trump adviser, the Republican presidential nominee will vow to lure jobs and factories to the US from abroad and “personally recruit” foreign companies.

The speech will come a day after the former president attacked John Deere, the storied US agricultural machinery manufacturer, for its plan to shift some production to Mexico, warning that as president he would slap massive tariffs on products it exported to the US.

Trump’s push on foreign investment comes as the Republican candidate and his Democratic rival Harris clash on the economy — the biggest issue for voters in this year’s White House race, according to many polls.

Harris is expected on Wednesday to deliver her own campaign speech on the economy in Pittsburgh, Pennsylvania, a rust-belt city at the centre of an election maelstrom over a Japanese company’s bid to buy US Steel — a takeover opposed by both candidates and Joe Biden.

Trump’s push on foreign investment comes as Democrats warn that his plans to gut the clean energy subsidies from Biden’s Inflation Reduction Act would damage a recovery under way in industrial America and amount to a self-inflicted wound as the US competes with China.

The IRA has already triggered a rush of investment to the US over the past two years which Trump’s opponents say would be at risk if he wins a second term in the White House.

Jennifer Granholm, the US energy secretary, told the Financial Times in an interview this week that scrapping the IRA would jeopardise a “tsunami of investment” that was unfolding.

“That just seems like we would be not just unilaterally disarming, we would be stabbing ourselves because it would be so foolish,” she said.

Trump will tell his audience in Georgia that his plans, which include cutting corporate tax to 15 per cent from 21 per cent for companies that produce goods domestically, slashing regulations and boosting energy production, will make the US more attractive to foreign companies. He will also pledge to make federal land available to would-be investors.

Economists have warned that Trump’s tariff and tax plans could reignite inflation and disrupt supply chains, raising doubts about his pitch to foreign investors.

Trump has threatened to impose up to 20 per cent tariffs on all imports, and even higher levies on goods from China, raising costs for manufacturers that depend on some degree on foreign components.

His comments in western Pennsylvania on Monday also showed his willingness to use tariffs on individual companies.

“I’m just notifying John Deere right now: If you do that [shift production to Mexico], we’re putting a 200 per cent tariff on everything that you want to sell into the United States.”

On Monday, Trump also reiterated his opposition to the planned takeover of US Steel by Japan’s Nippon Steel.

“We are going to keep US Steel right here in America,” Trump said on Monday night at a separate rally in western Pennsylvania.

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Our instinct to burrow may have emerged at a time when we inhabited caves and sought solace and safety in the dark. Curling up in a confined space – albeit with more cushioning – has universal appeal. Nooks are synonymous with cocooning, and carving one out in the corners of a home conjures warmth. 

“In small spaces, nooks play a part in achieving that feeling of protection and comfort,” says British designer Emma Ainscough, who’s snuck a bed in the eaves of a London townhouse, and wrapped another in cream linen surrounded by dreamy floral wallpaper.

Creating a place to retreat and relax has intensified with the advent of working from home. “Nooks bring about a very human response,” says Camilla Clarke, the creative director of design studio Albion Nord. “It’s important to consider how having a secluded space to escape enhances our wellbeing. I think it’s one of the reasons they have become so popular in recent years.” 

For American interior designer Hadley Wiggins, the allure is also symbolic. “A nook represents the luxury of time – a lifestyle that has room for napping or an unrushed chat,” she says. “You may sleep there, but it isn’t the sleep of necessity.” When designing a historic home on Long Island’s North Fork – where she established her namesake firm in 2012 – Wiggins incorporated a fairytale-like sleeping berth, saturated in a palette of inky blues and putty green, in the pool house.

While some nooks invite seclusion, others draw people together. The creative consulting and interior design studio Wall for Apricots nestled a games area in a home perched in the California mountains, imagining it as a “treasured spot for a family to gather”, says co-founder Katy Burgess. An under-bench storage area conceals an assortment of games, while a custom Muhly table, a mix of vintage cushions, and wood tones add warmth and richness. “This area is a tiny emblem of the house itself, which was designed to be both functional and fantastical.”

Nooks hark back to building dens – this is what speaks to people

Nooks are as practical as they are aesthetic and meditative, serving as cubby holes for leisurely activities while lending charm and purpose to underused, often awkward, parts of a house. “If designed properly, they can be very utilitarian while still being tailored to a specific location,” says Patrick Bernatz Ward, who runs an interior and architectural design firm in Los Angeles. When transforming a mudroom into a cloistered dining nook as part of a redesign of an arts and crafts-style house in Lincoln Heights, the designer created a “very distinct zone that felt intimate”.

Max Rollitt, an antique dealer and decorator known for his English country homes, attests to the increased demand for layouts that feel bespoke and intimate. “We’re seeing a reversal of open-plan living – walls and doors being put in, rather than taken out. People are spending more time at home and, in doing so, they’ve needed more of a delineation of space.” In the same way, he says, “nooks needn’t be architecturally led. You can create one almost anywhere simply by defining the space, be it with furniture or fabrics.” 

Rita Konig says that nooks tap into our playful side. “They hark back to building dens – this is what speaks to people,” says the British interior designer. “It often conjures memories of making camps under the kitchen table with blankets,” agrees designer Veere Grenney, who pays homage to this in his enchanting tented dressing room in Tangier, where a writing desk and bed are canopied from ceiling to floor in Schumacher’s berber-brown Rafe Stripe fabric. 

Grenney, who’s designed more than a dozen sleeping nooks for clients, often uses curtains to frame the bed with sumptuous swathes. But what are the other requisites for a good nook? 

“It should ideally highlight a view and draw on the tones and shadows from the exterior,” says Bernatz Ward. “My projects typically involve blurring the lines between the natural environment and interior construction, and nooks – such as window seats – are a dramatic way to do that.”

Lighting, whether natural or artificial, is also crucial, says Noa Santos, founder of New York-based design studio Nainoa. In a project in California, the studio set a square bathtub in panelled waxed white oak, and placed it against a large window overlooking a courtyard. The space is airy, light but also snug. 

Australian designer and decorator Lisa Burdus recommends using the nook space in its entirety. “Fill it completely with a desk or a seating arrangement so it feels cosy,” she says. For dining nooks, make every concession to comfort, taking cues from French designer Pierre Yovanovitch, Albion Nord and fabric designer Cathy Nordström, who often upholster banquettes with seat cushions. 

Ainscough proposes adding “complementary layers of textures, colour and pattern to create something considered and maximalist without being too overwhelming”. She continues: “It’s a real opportunity to be bolder than you would be in a larger space.” 

When it comes to the bed, “make it a cabin: give it sides, a lowered ceiling and use the space around it for storage,” says Konig, whose bed boxes resemble those on trains and ships, allowing for small spaces and creating a feel that is more intentional than squished. Grenney also suggests including shelving for books. Most importantly, he concludes, “just get on and do it! One of my mantras is that you shouldn’t make things too perfect.”

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Troubled intercity rail operator Avanti West Coast will not be stripped of its contract early by the UK government, according to people with knowledge of the plans. 

Earlier this year, northern leaders demanded that operation of the route — which connects London with major cities including Birmingham, Manchester and Liverpool — be nationalised because of sustained frustrations over performance.

Avanti was the worst-performing train operator in the UK between April and June, according to recent industry figures. Almost 60 per cent of its trains over the period were late, double the national average, figures from the Office of Rail and Road showed. Cancellation levels were also twice the national average.

However, legal advice provided to the Department for Transport concluded that the operator was not in breach of its performance obligations, people familiar with the findings said.

One of the people said the company’s most recent contract had “rewarded failure”, as it had been drawn up in such a way that it was very difficult to breach on performance grounds.

As a result, the route could end up being one of the last to be nationalised under Labour’s plans to gradually bring all rail services under state control, because its contract is one of the last to come up for renewal.

Ministers are instead working on the basis that the first nationalisations under Labour will be Greater Anglia or West Midlands trains early next year.

Earlier on Tuesday, Starmer championed the railway services bill “bringing railways back into public ownership” in his speech to the Labour party conference in Liverpool.

Avanti, which is co-owned by First Group and Trentitalia, has been heavily criticised over the reliability and quality of its services since it took over the country’s biggest intercity rail route in 2019. 

Twelve months ago the previous Conservative government extended its contract for a further nine years, with a break clause in 2026, following a brief period of improvement. Shortly afterwards the operator’s performance nosedived again. 

In April, members of the pan-northern transport body Transport for the North unanimously voted for the service to be nationalised because of its sustained unreliability, slashed timetables and poor customer service. 

Greater Manchester’s Labour mayor Andy Burnham said he had “completely run out of patience” with the operator.

At the time, the Department for Transport said that removing Avanti’s contract would not solve problems that it said were caused by issues beyond the company’s control, such as the weather and infrastructure problems. 

Three months later, Labour were elected to power on a promise to gradually nationalise the entirety of the rail network as each existing operating contract expires.

Two people with knowledge of the matter said that the earliest end date was likely to be 2027, once a break in the contract had been executed.

The government is expected to begin its broader nationalisation process when the Passenger Railway Services bill receives Royal Assent, which is expected later this year.

Under the bill, contracts to run train operators that are let to private companies will be permanently returned to the government as they expire.

These former franchises would then be run by the Department for Transport’s “Operator of Last Resort”, which already operates four English railway franchises on behalf of the government. 

The first contract to expire will be South Western Railway in May 2025. But under the terms of the current contracts with train operators, the government can also exercise break clauses in order to bring companies in-house earlier.

Break clauses at Greater Anglia and West Midlands Trains expired in September, so the government is set to begin the nationalisations after giving one of these operators, which are both run by TransportUK, the required three months notice.

A government official said that process was expected to start in February.

Industry executives believe ministers had been considering whether to start with a high-profile struggling operator, such as Avanti or Cross Country, which received an improvement notice in August. 

But they said an easier option would be to bring in one of the TransportUK franchises first, which are both performing well. 

Greater Anglia was the best-performing operator according to the recent reliability data, and is the only operator currently returning a surplus to the government.

One industry executive warned that trying to nationalise several operators in a short timeframe was “a recipe for failure and risk”.

Trenitalia and First Group declined to comment. The Department for Transport and TransportUK did not immediately comment.