What is an Investment Trust?
An investment trust is a listed public company that invests in other companies and is quoted on a stock exchange. Investment trusts are 'closed-ended funds' meaning that there are a fixed number of shares and this number does not usually change regardless of the number of investors.
The price of the shares reflects the value of the underlying holdings of the trust, but is also affected by the demand for the shares. For example, if there are more buyers than sellers, the share price tends to rise and vice versa.
Investment trusts are companies which invest in the shares of other companies. These investments are managed by professional Fund Managers who are accountable to each trusts' Boards of Directors. The Directors are, in turn, accountable to the shareholders. Investment trusts are also subject to company law and the rules of the London Stock Exchange.
Investing in our investment trusts is:
- convenient: access to a diversified portfolio within a single investment
- cost-effective: less expensive than buying individual shares
- quality assured: professionally managed portfolio of shares and securities
- independent: Board of Directors looking after shareholders' interests
For more information about our investment trusts, please visit the RCM website
RCM website...