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 PLC22.9474.89134.143.57751.20Buy
Scottish American Investment Company PLC10.6856.8084.154.85345.27Buy
Scottish Mortgage Investment Trust PLC27.4274.88204.912.89448.25Buy
3i Group Plc Ord22.29107.03247.2030.81701.00Buy
AEW UK Long Lease REIT PLC Ord GBP0.01-----Buy
AXA Property Trust Limited Ord NPV-28.980.3923.31-35.4763.69Buy
Aberdeen Diversified Income and Growth Trust Plc Ord 25p6.175.8018.65-3.30124.61Buy
Aberdeen Asian Income Ord2.5115.915.87-8.58226.42Buy
Aberdeen Japan Investment Trust PLC Ord 10p15.1915.9965.67-13.63686.02Buy
Aberdeen New India Investment Trust PLC Ord 25P0.2026.3984.98-14.40503.53Buy
Aberdeen Smaller Companies Income Trust PLC Ord 50p33.6257.6678.56-14.21337.46Buy
Aberdeen Latin American Income Ltd Ord0.3128.00-21.33-13.9882.31Buy
Aberforth Smaller Companies Trust plc Ord12.3538.1598.25-11.211,538.45Buy
Aberdeen Frontier Markets Investment Company Limited Ord 1P-8.223.9224.81-9.9366.34Buy
Aberdeen Asian Smaller Companies Investment Trust PLC Ord 25p2.7522.785.00-12.501,182.80Buy
Aberdeen Asian Smaller Companies Investment Trust PLC 2% Convertible Unsecured Loan Stock0.3016.2410.62--Buy
Aberdeen Emerging Markets Investment Company Limited Ord 1p NPV14.8628.2130.37-10.94677.08Buy
Aberdeen New Dawn Investment Trust PLC Ord 5p14.8127.7134.06-11.73265.10Buy
Aberdeen New Thai Investment Trust PLC Ord 25p12.2224.4912.03-13.90659.67Buy
Aberforth Split Level Income Trust PLC ZDP 1P---5.68102.20Buy
Aberforth Split Level Income Trust PLC Ord 1P----6.52102.37Buy
Acorn Income Ld RED ZDP 1P4.6614.8829.764.87144.46Buy
Acorn Income Ld Ord12.0747.4478.29-5.57460.67Buy

Featured Manager Videos

Investment trust analysis

Tue, 17th April 2018 - 09:04

When there are management changes at a trust, they could either usher in better days ahead, or pose a threat to performance. Fiona Hamilton looks at the key impacts.

Thu, 12th April 2018 - 10:00

Despite the market downturn, the most commonly bought investments hardly changed between February and March. Tom Bailey takes a look at the top performers.

Fri, 23rd March 2018 - 17:06

The AIC's 'Next Generation of Dividend Heroes' list comprises 21 trusts that have increased their dividends each year for 10 to 20 years. Kyle Caldwell runs through the list.

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