Investment trust

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Related to Investment trusts: Real estate investment trusts

Investment trust

A closed-end fund regulated by the Investment Company Act of 1940. These funds have a fixed number of shares that are traded on the secondary markets, like corporate stock. The market price may exceed the asset value per share, in which case shares are selling at a premium. When the market price falls below the (NAV)/share, shares are selling at a discount. Many closed-end funds are of a specialized nature; the portfolio represents a particular industry or country. These funds are usually listed on US and foreign exchanges.

Unit Investment Trust

An investment company that offers an unmanaged portfolio of stocks and/or bonds, packaging the portfolio as shares that are redeemable from the trust after a certain period of time. Unit investment trusts are designed to give shareholders income from dividends and/or coupons. See also: Mutual fund.
References in periodicals archive ?
Investment trusts have independent Boards of Directors who look after shareholder interests and monitor the activities of the fund manager.
QA Im interested in obtaining a unit investment trust.
But unlike unit trusts, investment trusts are stock market-listed companies in which investors buy and sell shares - just as they would with any other business.
It was the second consecutive month in which canceled or redeemed investment trusts outnumbered newly opened investment trusts.
At the same time, the government will abolish a regulation that had previously banned investment trust management companies from selling investment trusts to customers.

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