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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
There is a complaints procedure which can take her up to the Ombudsman." John Tiner, Managing Director of the city watchdog the Financial Services Authority said split capital investment trusts were sold as being "as safe as houses or having "more safety features than a Volvo".
The regulator has been investigating allegations that a number of firms which ran split capital investment trusts colluded to boost share prices.
Split capital investment trusts have different classes of shareholders, with some investing for income and some investing for growth.
Speaking after the publication of the committee's report into the collapse of split capital investment trusts, he asked the watchdog, to 'tell us when they are going to finish it and publish a full report.'
A SCOTS MP yesterday slammed the compensation scheme for people who lost cash in split capital investment trusts.
J.J., Denbigh ABERDEEN has been in deep trouble over itsmanagement (or mismanagement) of split capital investment trusts. Its sale of some funds to New Star means you and about 400,000 other investors will no longer have to worry about Aberdeen's managers coming under the Financial Services Authority microscope.
The group, which has seen its shares dive following the collapse of a number of its split capital investment trusts, blamed the fall on tough market conditions and warned it did not expect them to improve during the coming year.
Instead he claimed the collapse of the sector was due to the weak structure of some split capital investment trusts, caused by high levels of borrowings to invest and cross holdings in other splits.
He designed what are known as Split Capital Investment Trusts, or Split Caps.
Split capital investment trusts had different classes of shareholders, with some investing for income and some for growth.
If they come this week they will shed some light on whether the fund manager can start to move on from the problems surrounding losses from split capital investment trusts.
Worse still, split capital investment trusts were frequently marketed as lowrisk schemes.