Close
Finsbury Investment Trusts
Close Finsbury Investment Trusts
An
Investment Trust is a company whose business is to invest
in other companies. By buying shares in an Investment Trust,
you are effectively gaining access to a wide share portfolio
without the high costs that this usually involves for the
individual investor.
Investment
Trusts are public limited companies listed on the London Stock
Exchange with a fixed number of issued shares. They have independent
boards of directors who ensure that fund managers comply with
the policies of the Trusts.
Investment
Trusts can also ‘gear’ – this means that a
Trust can borrow money to buy more stocks, which can enhance
potential returns.
How
are the Trusts priced?
Share
prices reflect supply and demand, and not the value of the
underlying portfolio. There is a difference between the price
at which you may purchase ('the offer price) or sell ('the
bid price') a share on the Stock Market, which is known as
the 'bid-offer' or dealing spread. This spread is set by the
market makers and varies from share to share.
The
prices may be lower than the underlying net asset value of
the shares ('discount') or higher ('premium'). Investors need
to take this into account when deciding which Trust to buy.
How
to invest in the Close Finsbury Trusts
The
Close Finsbury Investment Trusts are available within the
Close Finsbury ISA, Savings Scheme and PEP.
For
further information on Close Finsbury Investment Trusts visit
the Close Finsbury website.
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