Intro

An investment trust can be one of the most efficient ways to invest in the stock market. This guide explains simply what investment trusts are, how they work and what they can be used for.

What is an investment trust?

An investment trust is a listed company with shares quoted on the London Stock Exchange which invests in the shares of other companies or in fixed-interest securities, unquoted securities or property. As a quoted company, the share price of an investment trust is determined by the supply and demand for its shares on the stock market. The price is published each day, usually in the Financial Times and on the Internet site Trustnet. An investment trust has an independent board of directors who are responsible for looking after shareholders' interests.

Please note:

This document has been issued and approved by Baillie Gifford Savings Management Limited (BGSM). BGSM is wholly owned by Baillie Gifford & Co, who is the manager and secretary of eight investment trusts. Investment trusts are listed UK public limited companies and are not authorised or regulated by the Financial Services Authority. BGSM and Baillie Gifford & Co are authorised and regulated by the Financial Services Authority and both are based at Calton Square, 1 Greenside Row, Edinburgh EH1 3AN. All data is at 31 August 2006 unless otherwise indicated.