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 ?
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.
It is estimated up topounds 600million was lost in split capital investment trusts.
Split capital investment trusts have different classes of shareholders, with some investing for income and some investing for growth.
Split capital investment trusts have different types of shareholder, with some investing for growth and some for income.
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.
He designed what are known as Split Capital Investment Trusts, or Split Caps.
THE City watchdog yesterday accused managers of split capital investment trusts of burying their heads in the sand about the problems which caused the sector to collapse.
Mr Culhane believes the debacle on split capital investment trusts illustrates the value of updating training.
Investors who lost money through ill-fated split capital investment trusts have been urged to begin filing their compensation claims.
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.
But he added that the business had also been helped by the fact that it had never sold high tech funds, split capital investment trusts or precipice bonds, and so was not dealing with a disillusioned client base.