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A guide to investment trusts in the United Kingdom

An investment trust is defined as a public limited company and is a closed-end fund, often functioning with no employees. Business people invest their money from a certain number of shares released from the launching of a trust. A board of non-executive directors will usually invest stocks and shares for a number of companies, which are included on the stock exchange.

One of the types of investment trusts operating in the United Kingdom is a Split Capital Investment Trust. These issue classes of shares to match investors' needs and are often used from between five to ten years. The class of shares An example is Aberforth Split Level Trust plc, which has vested interests in a number of quoted companies in the UK and is managed by Aberforth Partners. As of August 2011, the trust has set a share price of 600 UK pence and boasts gross assets of £684.6m.

The second type is a real estate investment trust. These either lower or completely remove the income tax on corporate companies; however such trusts are obligated to allocate the vast majority of their taxable profits to investors. They can also be privately or publically held and are used for the mortgage, equity and hybrid markets. An excellent example is British Land Company plc, which is a major national property developer and investment company. Its net income in 2010 was more than £1.1bn and its individual share price fluctuated from a low of 447.5 UK pence to 629.5 UK pence in 2011.

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