Investment Trust
A closed-ended UK listed company that invests in a portfolio of other assets.
Investment trusts are public limited companies listed on the LSE, with a fixed number of shares in issue. Because shares trade on the market, the price can drift above NAV (a premium) or below NAV (a discount). Long-running examples include Scottish Mortgage, City of London, and F&C Investment Trust (founded 1868, the world’s oldest). Trusts can use gearing (borrowing) up to limits set in their articles, which boosts returns in rising markets and worsens drawdowns in falling ones. They are regulated as listed companies by the FCA and overseen by an independent board of directors.
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