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 PLC64.4687.96123.711.21669.43Buy
Scottish American Investment Company PLC31.6355.96101.745.80328.45Buy
Scottish Mortgage Investment Trust PLC54.92110.30218.673.37371.97Buy
3i Group Plc Ord73.04147.27488.3248.48558.00Buy
3i Group Plc Pref-----Buy
3i Infrastructure20.5683.68124.8119.37165.70Buy
AXA Property Trust Limited Ord NPV3.1152.9994.30-15.8668.93Buy
Aberdeen Diversified Income and Growth Trust Plc Ord 25p3.27-2.4030.94-7.22123.81Buy
Aberdeen Asian Income Ord36.6018.8941.70--Buy
Aberdeen Japan Investment Trust PLC Ord 10p21.4472.5393.03-13.44629.60Buy
Aberdeen New India Investment Trust PLC Ord 25P44.9286.98140.05-8.46494.34Buy
Aberdeen Smaller Companies Income Trust PLC Ord 50p25.3725.93146.48-19.18298.19Buy
Aberdeen Latin American Income Ltd Ord42.236.550.37--Buy
Aberforth Smaller Companies Trust plc Ord29.0929.86152.13-11.021,465.57Buy
Aberforth Geared Income Trust Plc ZDP 1P3.5810.9831.340.47158.51Buy
Aberforth Geared Income Trust Plc Ord 1P36.5064.30247.06-5.47252.71Buy
Aberdeen Frontier Markets Investment Company Limited Ord 1P27.1715.9564.87-4.8969.79Buy
Aberdeen Emerging Markets Investment Company Limited Ord 1p NPV43.7332.7635.67-13.65644.18Buy
Aberdeen Asian Smaller Companies Investment Trust PLC Ord 25p32.6523.6761.54-13.081,170.05Buy
Aberdeen Asian Smaller Companies Investment Trust PLC Convertible Unsecured Loan Stock 201914.7120.3936.40--Buy
Aberdeen New Dawn Investment Trust PLC Ord 5p49.3933.7956.92-13.86249.60Buy
Aberdeen New Thai Investment Trust PLC Ord 25p34.3138.6481.29-15.89600.68Buy
Aberdeen Private Equity Ltd GBP41.1057.32133.64-19.34147.69Buy

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