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 ?
The Association of Investment Trust Companies reckons that charges and stamp duty, plus the difference between the buying and selling price of an investment trust share, totals around 3.5 per cent of a typical purchase.
Few alive today will have started investing in 1939, but the patience of most buy and hold investors since will have been rewarded with significant income and capital growth." Myron Jobson, Personal Finance Campaigner, interactive investor, said: "These 34 investment trusts have to date demonstrated a robustness to not only withstand but evolve with changes in society.
The multiple is less for the regular saver, for his investment of PS18,000 would have grown 5.25 times in the average investment trust. It would have been 21.49 times for the lump sum investor but, of course.
However, this is in line with the performance of investment trusts as a whole.
National Association of Real Estate Investment Trusts (NAREIT) research has found that the majority of university endowments invest through real estate investment funds managed by outside managers or through real estate investment trusts.
This is a main stream investment trust with half its money in UK blue chips and the other half in global shares -- a sector that a private investor cannot easily access.
Investment trust companies are able to take advantage of investment opportunities through ``gearing'' (borrowing).
Anyone putting pounds 1,000 into an investment trust a year ago would now have, on average, pounds 1,031.
The investment trust funds set up by the subsidiary were transferred to Dai-Ichi Kangyo Asset Management Co., so the operation and management of the funds can continue as before, DKB said.
A new web site for the UK Association of Investment Trust Companies has been launched at http://www.itsonline.co.uk.
One thousand pounds popped five years ago into the Enterprise Personal Equity Plan run by investment trust giant Foreign & Colonial is now worth pounds 4,267.
Typical umbrella partnership real estate investment trust (UPREIT) transactions include the formation of an operating partnership by a sponsor that contributes real estate properties and related debt to the operating partnership in exchange for a limited partnership interest.

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