Financial Times Guide to Investment Trusts
Unlocking the City's Best Kept Secret

Book Title

By: John Baron
January 2014
Pearson Education
Distributed by Trans-Atlantic Publications Inc.
ISBN: 9781292001562
142 Pages, Illustrated
$67.50 Paper Original


A comprehensive and practical guide to investment trusts. These investment vehicles have been underused by investors in the past, but that is set to change now that the Retail Distribution Review has banned commissions and put investment trusts on a level playing field. The book explains what investment trusts are and focuses on how to construct and run a trust portfolio. It offers investors, both experienced and novice, a concise and jargon free guide to these lucrative investment vehicles.



Introduction: The changing landscape

Chapter 1: Structure and scope

· What are investment trusts?

· Net asset value (NAV)

· Discounts and premiums

· Price and size

· Range and reach

Chapter 2: Better performance

· Share prices

· NAV comparison

· Clear message

· The strange case of ‘Mirror funds’

Chapter3: Cheaper Fees

· Charges compared

· Effect on returns

· Lessons from America

· The TER and more

Chapter 4: Discount opportunities

· Their importance

· Factors affecting

· Judging opportunities

· The long term

Chapter 5: Other advantages

· Gearing

· Board of Directors

· Shareholder power

· Long term investing

· Marketability

· Dividends

· Capital changes

Chapter 6: The disadvantages

· Unhelpful gearing

· Widening discounts

· Poor liquidity

· Rising fees

· The result!

Chapter 7: Useful miscellany

· Directors’ shareholdings

· Report & Accounts

· Doing the splits

· ETFs and trackers

· Portfolio turnover

Chapter 8: Investment objectives

· Risk tolerances

· Income requirements

· Time horizons

· Currency and other considerations

· Choosing a benchmark

Chapter 9: Successful investing

· Getting started

· Staying invested

· Diversification

· Importance of dividends

· Some other secrets!

Chapter 10: Portfolio construction

· The Investors Chronicle portfolios

· Balancing capital and income

· Themes and geography

· Risk and reward

· Some golden rules