Investment Trusts
Introduction
Investment trusts are collective investment funds structured as companies quoted on the stock exchange. Investment trusts invest mainly in shares, aiming to generate returns through capital growth or income or a mix of the two.
A professional fund manager is employed to invest the funds in the shares of a wider range of companies than most people could practically invest in themselves. There are more than 300 investment trusts responsible for the management of billions of pounds' worth of assets on behalf of investors.
As a quoted company, an investment trust is a 'closed ended' fund with a fixed number of shares in issue. Conventional investment trusts issue only one class of ordinary share. These usually give shareholders a right to dividend distributions and offer the opportunity of capital growth to increase the value of their investment.
Download guide† (105 KB)
† Requires Adobe® Reader®. You can download it for free here.