investment trust company

investment trust company

a financial institution which issues its own shares to the investing public and which specializes in investment in FINANCIAL SECURITIES, mainly UK and overseas corporate stocks and shares and government fixed-interest securities. They tend to be attractive to smaller investors who wish to secure a wider spread of risk than they could achieve for themselves by direct investment in a limited number of securities, or who require professional management of their investments.

Investment trust company shares are bought and sold on the STOCK MARKET so that, like other securities, their prices can go up or down reflecting general stock market price trends, but more particularly the company's own performance. Investment trust companies vary in the portfolios they put together and the expertise with which they are managed, so that the portfolio performance of different companies has varied from mediocre to excellent over the years.

In recent years most investment trust company shares have traded at a substantial DISCOUNT on their asset values (i.e. asset backing per share), partly reflecting small investors' preference for UNIT TRUSTS as an alternative investment medium.

Investment trust companies in the UK are represented by the Association of Investment Trust Companies (AITC), which provides a forum for the discussion of matters of general concern to members, and acts on behalf of members in dealings with other institutional bodies such as the Institutional Investors Committee and the government. The investment and management of funds by investment trust companies is regulated by the FINANCIAL SERVICES AUTHORITY in accordance with various standards of good practice laid down under the FINANCIAL SERVICES ACT 1986. See INSTITUTIONAL INVESTORS, FINANCIAL SYSTEM, PORTFOLIO.

investment trust company

a financial institution that issues its own shares to the investing public and specializes in investment in FINANCIAL SECURITIES, mainly UK and overseas corporate stocks and shares and government fixed-interest securities. Investment trust company shares themselves are bought and sold on the STOCK EXCHANGE.

They tend to be attractive to smaller investors who wish to secure a wider spread of risk than they could achieve for themselves by direct investment in a limited number of securities, or who require professional management of their investments.

Investment trust companies in the UK are represented by the Association of Investment Trust Companies (AITC), which acts on behalf of members in dealings with other institutional bodies, such as the Institutional Investors Committee, and the government. The investment and management of funds by investment trust companies are regulated by the FINANCIAL SERVICES AUTHORITY in accordance with various standards of good practice laid down under the FINANCIAL SERVICES ACT 1986. See INSTITUTIONAL INVESTORS, FINANCIAL SYSTEM, PORTFOLIO, TRACKER FUND, INDIVIDUAL SAVINGS ACCOUNT.

References in periodicals archive ?
Morgan Lewis represented Pantheon International Plc (PIP), an investment trust company managed by Pantheon Ventures (UK) LLP that invests in private equity funds globally, in a share capital reorganization for the purpose of consolidating its ordinary and redeemable share capital into a single class of ordinary shares.
31 October 2017 - UK-based investment trust company Caledonia Investments plc (LON: CLDN) has sold its 100% interest in Chelsea, London private members club The Sloane Club to Sloane Investment Ltd.
Within the Financials sector of the FTSE 100 index, British Land, an investment trust company which owns a range of office and retail properties across the UK, issued a trading statement for the final three months of 2014.
Add confidence Ahmed bin Said Kashoob, chief executive officer of the Global Investment Trust Company, said the merger or acquisition between commercial banks would result in financial entities that could finance major economic projects in the Sultanate.
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Cathay Investment Trust, however, has decided to withhold its plan to enter the Chinese market for the time being, although it is the first local investment trust company to establish a cooperative link with a Chinese counterpart.
The company, which is backed by investment trust company Caledonia Investments plc, completed 12 acquisitions during the year, including brokerage businesses in Warrington, Redditch, Sheffield, Exeter, Bristol, Colchester, Belfast and Aberdeen.
The Wakefield group, which is backed by investment trust company Caledonia Investments, provides insurance broking, risk management and financial advice.
Caledonia, a quoted investment trust company built by the Cayzer family of shipping fame, describes itself as ``a supportive and constructive long-term investor'', and SIS chairman Howard P erlin yesterday welcomed its arrival, which will take executive director John May on to the board.
THE future of a Liverpool investment trust company is to be decided in the next few weeks.
Cammack Morton is president and chief executive of Cary, NC-based Konover Property Trust, a $500 million real estate investment trust company.
Under the terms of the deal, Bidco, a vehicle set up by the Rutland investment trust company for the purpose of the acquisition, is offering 600 pence per share for Wolstenholme, valuing it at about 48.

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