Investment Trusts

Invest in shares, bonds, property and other assets with a trust that alligns itself to your  goal. Income growth, capital growth, dividend growth.

What is an Investment Trust?

Investment Trusts are listed companies that invest in the shares of other companies or fixed income securities, unquoted securities or property.

As a listed company its shares are quoted on the London Stock Exchange and the share price is determined by demand and supply.
 

Buying Investment Trusts with us

  • Buy and sell Investment Trusts in your Trading Account, ISA and SIPP
  • Trade at our lowest share dealing rate in your first 3 months. See our rates & charges page. After that you'll move onto our Frequent or Standard rate based on your average number of monthly trades completed.
  • Our low cost dividend reinvestment service is available for a range of Investment Trusts, making it easy to build up the value of your holdings by automatically purchasing more shares in the investment trusts you hold. See our rates & charges page.
  • Gradually build up your holdings by setting up a regular investment from as little as £25 per month and avoid having to time the market and decide when's the best time to buy
  • Use our Quickrank Tool to find information, performance data and statistics about any of our 600+ Investment Trusts

Key features

  • When you purchase a share in an investment trust you are buying ‘an interest’ in all of the companies that the investment trust is invested in. This is known as the Net Asset Value (or NAV), normally expressed as a 'per share' figure.
  • The NAV per share is equal to the Net Assets / Number of shares in issue.
  • A premium is where the share price is above the NAV (the cost to purchase shares is above what the underlying investment is really worth).
  • A discount is where the share price is below the NAV (shares are cheaper than their net worth). This feature can increase the risk profile of investment trusts.
  • The dividend income will rise and fall in line performance of the shares which the investment trust owns and market forces.
  • A main tax advantage to an investment trust is that it can buy and sell shares in companies without incurring capital gains tax (you may incur a capital gains tax when selling the investment trust itself).
  • Some investment trust managers may use gearing to invest in good opportunities. Simply put, gearing means borrowing more money in addition to investors’ money.This can magnify gains when the manager makes the correct decisions, but can exacerbate losses if they get it wrong.
  • In most cases there will also be an Ongoing Charge payable to the Investment Trust Manager.
  • It may sometimes be difficult to sell an Investment Trust and access the capital invested in the short term. Before investing you should read the Prospectus for full details of the risks.

Which account do I need?

You can invest in Investment Trusts in an ISA, SIPP or Trading Account.

see which account is right for you
 
Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Custodian REIT PLC Ord 1P11.2329.21-8.68106.00Buy
DP Aircraft I Limited Ord12.7330.27-7.570.99Buy
Damille Investments II Limited Ord-29.17-0.58-16.26-10.9595.45Buy
Derwent London9.19-7.8843.31--Buy
Dolphin Capital Investors-9.54-70.30-79.58-65.1721.10Buy
Doric Nimrod Air Two Limited Ord Pref Shs NPV9.6318.9634.7818.93179.94Buy
Doric Nimrod Air Three Limited Ord Npv7.8616.29-34.9573.73Buy
Downing Strategic Micro-Cap Investment Trust Plc Red Ord GBP0.001---1.5692.56Buy
Draganfly Investments Limited Ord NPV-50.35-77.85-92.42141.610.15Buy
Drum Income Plus Reit0.24--0.1095.40Buy
Dunedin Income Growth Investment Trust PLC Ord 25p3.866.8123.31-10.06277.40Buy
Dunedin Enterprise IT plc78.0679.8059.27-36.45569.60Buy
Dunedin Smaller Companies Investment Trust PLC Ord 5p17.8547.1862.12-14.95305.13Buy
EF Realisation Company Limited Ord NPV Inc GBP-18.86---15.6842.10Buy
EP Global Opportunities Trust7.1931.1774.45-6.08329.00Buy
EPE Special Opportunities-35.8555.25195.64-60.71432.72Buy
European Wealth Group Limited Ord 5P-40.45-66.46-61.38--Buy
Eastern European Property Ltd-39.04-54.49-66.86-64.2379.68Buy
Ecofin Global Utilities & Infrastructure Trust Plc ORD 1P4.98---11.33128.28Buy
Edinburgh Dragon Trust plc Ord 20p14.3337.8432.80-12.87424.65Buy
Risk warning
The value of your investments and the income derived from them may go down as well as up. You may not get back all the money that you invest. The tax treatment of these products depends on the individual circumstances of each customer and may be subject to changes in future.

Featured Fund Manager

 

 

Baillie Gifford has been managing investment trusts since 1909. Our success has been built on finding good investment opportunities for clients through extensive independent research. Our fundamental analysis and judgement over the years have helped us to become one of the largest investment trust managers. Find out more about Baillie Gifford.

Investment trust analysis

Fri, 23rd February 2018 - 11:38

While quarterly dividend payments help those seeking income, it can create extra costs for other investors. Tom Bailey analyses the trend.

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New dad Kyle Caldwell is on the lookout for an investment to buy and hold for the next 18 years. Find out what he picked.

How are they different to Funds?

Investment trusts are closed-ended companies. This means they have a fixed number of shares in issue, unlike Funds that are open-ended investment companies ('OEICs') or Unit Trusts. Investment Trusts are also listed companies and must have an independent board of directors that are obliged to answer to their shareholders.