Introduction to Investment Trusts

An investment trust (also known as an investment company) is structured as a company and listed on a stock exchange. It is a type of collective investment, investing in stocks, bonds, property and other assets. An investment trust sells a fixed number of shares at launch and so has a fixed pool of assets to invest. The fixed asset structure means that a trust's share price may be at a discount or premium to the actual value of the underlying assets.

The board of directors will usually delegate the responsibility for investing the assets to a dedicated investment manager. The board will then monitor whether that manager is doing a good job, and replace them if necessary. Investment trusts can also employ gearing – take on debt – to boost investment performance. Of course, this can also work against the trust's performance in a falling market.

Investment trusts are usually bought and sold in the same way as normal shares, though some will be bought through dedicated share schemes run by the companies themselves. Investors who buy through a broker will usually pay a flat dealing fee to move in and out. The annual management charge levied by the investment manager will be reflected in the performance of the trust. Investment trusts are also subject to stamp duty in the same way as normal shares.

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Monks Investment Trust PLC36.62104.85155.302.11747.21Buy
Scottish American Investment Company PLC20.0372.57100.485.40348.92Buy
Scottish Mortgage Investment Trust PLC42.1991.07214.610.80437.59Buy
3i Group Plc Ord31.25132.30393.5836.04652.00Buy
3i Group Plc Pref-----Buy
3i Infrastructure13.0266.58126.2014.35177.00Buy
AEW UK Long Lease REIT PLC Ord GBP0.01-----Buy
AXA Property Trust Limited Ord NPV-10.1443.36108.03-12.3964.49Buy
Aberdeen Diversified Income and Growth Trust Plc Ord 25p22.6810.0429.57-2.81126.56Buy
Aberdeen Asian Income Ord15.7525.9521.85-8.31234.48Buy
Aberdeen Japan Investment Trust PLC Ord 10p25.5149.68112.73-11.12712.77Buy
Aberdeen New India Investment Trust PLC Ord 25P24.4744.46110.37-12.08519.22Buy
Aberdeen Smaller Companies Income Trust PLC Ord 50p49.3573.71128.21-13.11329.14Buy
Aberdeen Latin American Income Ltd Ord17.9433.69-6.70-11.4982.48Buy
Aberforth Smaller Companies Trust plc Ord25.9238.31118.57-13.741,512.92Buy
Aberdeen Frontier Markets Investment Company Limited Ord 1P1.1410.2356.95-7.4168.31Buy
Aberdeen Emerging Markets Investment Company Limited Ord 1p NPV24.4545.8946.24-12.29698.05Buy
Aberdeen Asian Smaller Companies Investment Trust PLC Ord 25p14.0220.2625.76-12.581,188.51Buy
Aberdeen Asian Smaller Companies Investment Trust PLC Convertible Unsecured Loan Stock 20199.6618.9827.17--Buy
Aberdeen New Dawn Investment Trust PLC Ord 5p29.3943.5243.34-12.35268.12Buy
Aberdeen New Thai Investment Trust PLC Ord 25p19.5933.9654.46-14.08646.85Buy
Aberdeen Private Equity Ltd GBP14.4957.29109.00-16.48149.81Buy
Aberforth Split Level Income Trust PLC ZDP 1P---7.97100.95Buy

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