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Investment trusts are public limited companies that aim to make money by investing in a portfolio of companies or other assets. Although investment trusts – known as closed-ended investment vehicles – share similarities with their open-ended fund counterparts, such as unit trusts, they have unique characteristics.
Please note: you will find a detailed explanation of the structure and operation of investment trusts in the sections below.
Investment trusts boast a long pedigree, with the first, Foreign & Colonial, launching in 1868. Since then, they’ve evolved into a prominent investment sector, encompassing a diverse array of assets, sectors, and geographic regions, with over 370 trusts on offer.
Although the investment trust sector is smaller compared to its open-ended peers, it provides distinct advantages including consistent dividend yields, a more extensive spectrum of investment options and fully-invested portfolios.
The sector has also rewarded investors with a healthy annual total return of 8% on average over the last decade, according to the Association of Investment Companies (AIC), with a current yield of 4% for income-seeking investors.
To help investors navigate through the options, we asked our panel of experts which investment trusts are worthy of consideration and why. Their choices are set out below and span a range of assets from infrastructure projects to music catalogues.
Meanwhile, our FAQs section takes a closer look at investing in investment trusts.
