• Learn about investing
• Investment types explained
• Stocks and shares (equities)
• Funds
• Corporate Bonds
• Investment Trusts
• Exchange Traded Products
• Gilts
• Bonds
• Complex investments

Investment Trusts

Investment Trusts – what are they?

Investment Trusts are listed companies whose purpose is to invest in the shares of other companies. They differ from Funds in the following ways:

• As listed companies, Investment Trusts must have an independent board of directors and are answerable to their shareholders
• Unlike Unit Trusts and OEICs, where units and shares can be created or cancelled to meet demand, Investment Trusts are close-ended – they have a fixed number of shares in issue
• Investment Trust shares are traded on a stock exchange via your broker, in the same way as other stock market companies

Plus, because the number of shares in issue is fixed, the price of shares is determined by supply and demand. There's no direct link to the value of the investments held in the Investment Trust. This means that the shares can trade at either a premium or a discount to the actual value of the trust's investments.

Investment carries a variety of risks

We understand that investing isn't right for everyone. It's well known that investments, their value and the income they provide can go down as well as up and you might not get back what you originally invested. If you're not sure about the suitability of an investment please contact our Advice team.

01296 41 41 41