Investment Trusts
Income or Growth?
Some investment trusts are structured to offer high income while others focus on growth or a mix of growth and income. Some specialise in certain countries or regions. Others target specific industry sectors.
Each investment trust sets out its investment policy when it is launched and this will be reiterated each year in its annual report. A trust can ask shareholders to agree a change in investment policy. Some specify a date on which they will be wound up and the proceeds from the sale of investments returned to shareholders. Others hold a vote at regular intervals to decide if the trust should wind up or carry on.
All investment trusts invest in other companies. What varies between different investment trusts is what those other companies are, where they are based and what they do. When you are deciding which investment trust to invest in, the first thing you need to do is consider your investment objectives and the investment objectives of the investment trust company - what and where it is invested in and whether their aims are the same as your aims.
Introduction
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