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 PLC55.2853.6084.91-5.53642.52Buy
Scottish American Investment Company PLC40.3958.1179.104.85325.81Buy
Scottish Mortgage Investment Trust PLC43.5767.01172.541.75345.17Buy
3i Group Plc Ord73.9697.81344.1726.16558.00Buy
3i Group Plc Pref-----Buy
3i Infrastructure16.9481.60115.6517.32165.70Buy
AXA Property Trust Limited Ord NPV13.7677.6596.75-13.1771.40Buy
Aberdeen Diversified Income and Growth Trust Plc Ord 25p0.07-5.6912.03-8.76123.85Buy
Aberdeen Asian Income Ord44.3925.0340.29--Buy
Aberdeen Japan Investment Trust PLC Ord 10p29.3364.5790.45-9.43615.55Buy
Aberdeen New India Investment Trust PLC Ord 25P43.07106.3471.45-10.64459.53Buy
Aberdeen Smaller Companies Income Trust PLC Ord 50p20.628.22110.92-17.97271.86Buy
Aberdeen UK Tracker Trust PLC Ord 10P25.0121.8457.27-5.56367.04Buy
Aberdeen Latin American Income Ltd Ord78.0025.73-5.76--Buy
Aberforth Smaller Companies Trust plc Ord21.398.52113.00-13.991,370.80Buy
Aberforth Geared Income Trust Plc ZDP 1P3.7613.4230.451.53156.11Buy
Aberforth Geared Income Trust Plc Ord 1P33.8743.17189.41-6.81240.36Buy
Aberdeen Frontier Markets Investment Company Limited Ord 1P40.2920.1264.10-5.7872.04Buy
Aberdeen Emerging Markets Investment Company Limited Ord 1p NPV43.8435.6717.85-14.72636.69Buy
Aberdeen Asian Smaller Companies Investment Trust PLC Ord 25p38.6428.3061.52-13.361,161.07Buy
Aberdeen Asian Smaller Companies Investment Trust PLC Convertible Unsecured Loan Stock 201920.8120.32---Buy
Aberdeen New Dawn Investment Trust PLC Ord 5p50.4939.8238.82-13.57239.51Buy
Aberdeen New Thai Investment Trust PLC Ord 25p33.4547.3680.84-15.29598.83Buy

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Investment trust analysis

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