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 PLC35.31107.31150.29-0.26743.40Buy
Scottish American Investment Company PLC22.5379.6699.223.83354.90Buy
Scottish Mortgage Investment Trust PLC30.10103.73223.27-0.98439.11Buy
3i Group Plc Ord47.53189.37417.5748.89628.00Buy
3i Group Plc Pref-----Buy
3i Infrastructure12.9680.37128.2523.37169.00Buy
AEW UK Long Lease REIT PLC Ord GBP0.01-----Buy
AXA Property Trust Limited Ord NPV-3.8257.61144.28-11.6867.65Buy
Aberdeen Diversified Income and Growth Trust Plc Ord 25p17.2310.6624.02-5.77125.75Buy
Aberdeen Asian Income Ord11.7527.4030.28-8.70238.23Buy
Aberdeen Japan Investment Trust PLC Ord 10p16.3769.2098.87-11.61674.32Buy
Aberdeen New India Investment Trust PLC Ord 25P12.5663.21103.67-12.10519.89Buy
Aberdeen Smaller Companies Income Trust PLC Ord 50p43.1765.97126.71-16.76329.18Buy
Aberdeen Latin American Income Ltd Ord8.5126.080.26-12.3588.42Buy
Aberforth Smaller Companies Trust plc Ord32.8838.42122.40-13.081,523.32Buy
Aberdeen Frontier Markets Investment Company Limited Ord 1P-0.785.1559.95-6.7668.91Buy
Aberdeen Emerging Markets Investment Company Limited Ord 1p NPV18.2250.8749.00-11.53710.39Buy
Aberdeen Asian Smaller Companies Investment Trust PLC Ord 25p7.9117.4428.00-13.371,222.50Buy
Aberdeen Asian Smaller Companies Investment Trust PLC Convertible Unsecured Loan Stock 201911.2623.8731.72--Buy
Aberdeen New Dawn Investment Trust PLC Ord 5p21.2943.3253.55-12.68267.98Buy
Aberdeen New Thai Investment Trust PLC Ord 25p12.7529.5856.40-17.24652.47Buy
Aberdeen Private Equity Ltd GBP27.4369.37126.51-14.09152.05Buy
Aberforth Split Level Income Trust PLC ZDP 1P---7.31100.41Buy

Featured Manager Videos

Investment trust analysis

Thu, 19th October 2017 - 11:11

A year ago we outlined four ways to generate £1,000 a month. Kyle Caldwell looks at how each strategy has fared over the past 12 months.

Wed, 18th October 2017 - 10:04

As the bull run matures, should you be putting some protection into your portfolio? Jennifer Hill explores the best safe-haven assets available.

Tue, 17th October 2017 - 09:03

This trust has outperformed the FTSE All-Share index in six of the past seven years, yet is trading on a wide discount. Kyle Caldwell investigates.