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".
will be a split capital investment trust (with a geared capital structure)
of their assets invested in other split capital investment trusts, and 29% are
the RCB and split capital investment trust portfolios respectively.
liquidity of the Company's holding in other split capital investment trusts may
Worse still, split capital investment trusts were frequently marketed as lowrisk schemes.
Fund management and brokerage firms are believed to be close to agreeing a deal with the financial regulator on a compensation package for investors who lost money in split capital investment trusts.
It added that it had slashed its final dividend by two-thirds as it seeks to shore up its balance sheet, weak due to falls in markets and potential liabilities in the face of the pounds 12 billion split capital investment trust scandal.
Mis-selling scandals have ranged from people wrongly being sold personal pensions and endowment mortgages, to more recently consumers being persuaded to invest in split capital investment trusts and precipice bonds that were not suitable for them.
INVESTMENT group Aberdeen Asset Management are in the red after paying out pounds 50million to disgruntled clients over losses in the split capital investment trusts collapse six years ago.
The declaration paves the way for consumers to make a claim against the company in respect of EFML funds which invested in split capital investment trusts (splits).
preference shares in split capital investment trusts reaching the end of their