An investment trust is a listed public company that invests in other companies and is quoted on the stock exchange. Investment trusts are 'close-ended funds' as there are a fixed number of shares and this number does not usually change regardless of the number of investors. The price of the shares reflects the value of the underlying holdings of the trust, but is also affected by the demand for the shares. For example, if there are more buyers than sellers, the share price tends to rise and vice versa.
Investment trusts are managed by professional Fund Managers who are accountable to the Trusts' Boards of Directors. The Directors are, in turn, accountable to the shareholders. Investment trusts are also subject to company law and the rules of the London Stock Exchange.
Retail investors can benefit from these companies which themselves invest in the shares of other companies:
- quality: professionally managed portfolio of shares and securities
- independent: Board of Directors looking after shareholders' interests
- cost-effective: less expensive than buying individual shares
- convenient: access to a diversified portfolio within a single investment.
We detail the latest prices for each of our Investment Trusts so you can easily monitor the value of your shares. These prices are also quoted in the Daily Telegraph and FT, or you can call our Investor Services Team on 0800 317 573.
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