Investing 101: What is an investment trust?

Most people who invest in funds are familiar with OEICs (or open-ended investment companies), but are less au fait with closed-ended investment trusts.

FundCalibre’s Sam Slator explains the basic workings of an investment trust, a publicly-listed company that invests in other companies. See our other videos explaining gearing, discounts, revenue reserves and the role of an independent board. You can find more via our YouTube channel.


The views of the author and any people interviewed are their own and do not constitute financial advice. However the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Before you make any investment decision make sure you’re comfortable and fully understand the risks. If you invest in fund or trust make sure you know what specific risks they’re exposed to. Past performance is not a reliable guide to future returns. Remember all investments can fall in value as well as rise, so you could make a loss.