How investment trusts work

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HOWINVESTMENTTRUSTSWORK

FEATURING THE

Spotlight on Investment Trusts

5BACKTO BASICS Investment trusts still make a sound long-term choice for many investors

9MONEYWISE 2012 AWARDS We reveal the big hitters in the investment trust universe that should be on your radar

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HUNTING DOWN INCOME The investment trust sector offers a range of attractive income-focused options

HOW THE TRUSTS STACK UP We examine how the trusts have fared over the past 10 years

PRODUCED BY MONEYWISE PUBLISHING LTD STANDON HOUSE 21 MANSELL STREET LONDON E1 8AA © 2012

EDITORS: JOHANNA GORNITZKI RUTH JACKSON

WRITTEN BY: FAITH GLASGOW

ART DIRECTOR: MARK STAMMERS

PRODUCTION EDITOR: LAURA STAPLES

ADVERTISING ACCOUNT MANAGER: CHRIS SORRELL

PUBLISHER: JEREMY KING

Investment trusts have historically been much less popular with private investors than unit trusts – not least because financial advisers don’t earn ongoing commission by selling them to clients, as they do from unit trusts. But from the end of 2012, advisers will no longer be able to receive commission from any investment sales – and investment trusts are likely to attract more attention from ordinary investors as a result. There are various reasons why they deserve a higher profile, as this guide explains. Starting from first principles, we look at how investment trusts work, and highlight their various strengths and risks; we also examine why they’re particularly attractive if you need an income stream from your investment portfolio. In addition, we round up the winners and runners-up of eight leading sectors in our 2012 Investment Trust awards, and reveal the investment trust management group of the year. Based on a combination of performance data and individual assessment by our panel of financial experts, these awards provide a great hunting ground for anyone considering a move into investment trusts or looking for new ideas for their portfolio.

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