Investment trust

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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 ?
Whilst they can be strong longterm performers, it is important that you chose the investment trust that's appropriate for you.
The Association of Investment Trust Companies (AITC) produces a range of statistics and fact sheets on investment trusts, along with a free magazine, its the news, which explains about investment trusts, their benefits, and lists all member companies of the AITC.
ukAnswer these questions1pounds 1,000 invested 10 years ago in the average investment trust would now be worth: a) pounds 2,325 b) pounds 2,569 c) pounds 4,6002The Association of Investment Trust Companies' magazine is called: a) its for investment trusts b) its for the future c) its the news3By investing in 50 or more companies on your behalf, investment trusts spread your investment risk so that: a) You are not putting all your eggs in one basket.
The type of investment trust you choose depends on the level of risk you are prepared to tolerate.
Which is a great pity, because for those in on the secret investment trusts can be a great place for your money.
Like unit trusts, investment trusts are pooled investments in which managers take money from contributors and invest in a range of shares.
8 billion yen in investment profits stemming from recovering stock prices toward the end of November, helping boost the net assets in overall investment trusts, association officials said.
So far, investment trust management companies have been exempted from this ban only when they sell investment trusts dealing solely in Japanese stocks and bonds.
Banks will move into this field in December, when the government is to abolish a regulation barring them from selling investment trusts at their branches.

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