Why Investment Trusts?

1.3 What is the difference between an investment trust and a fund?

When you’re starting out, it’s worth understanding the different investment vehicles on offer. Here’s a short guide.

Investment trusts

Investment trusts hold assets in a range of countries and companies.

They have a fixed number of shares and can be traded through a stockbroker or on an investment platform.

Their prices can change throughout the day.

Their share price can be higher or lower than the underlying value of the assets the trust holds – known as the Net Asset Value (NAV).

Looking for income? Income-producing trusts can help if you wish to cover regular payments.

Income and growth. Income and growth trusts aim to provide a regular income while growing the underlying assets and offering some protection against inflation.

Long-term growth. You may not need immediate income. In which case you might consider a trust aiming to increase the value of the assets it holds.


Unit trusts and OEICS

These are known as ‘open-ended funds’ because as more investors buy in, the fund increases in size.

If you want to invest in an OEIC or unit trust, the fund manager issues new units with the money you’ve provided. If you want to leave, they sell those units.

Unit trusts are the most common type of collective investment scheme in the UK. They invest in a huge range of countries, companies and sectors.

Both investment trusts and funds are usually “actively” managed. That is, professionals buy and sell investments within them as they see fit to achieve their aims.

What are the benefits of investment trusts? Previous Chapter 1.2 1.2
Why choose J.P. Morgan investment trusts? Next Chapter 1.4 1.4

Please read this important information

This is a marketing communication and as such the views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy.

Investment is subject to documentation. The Investor Disclosure Document, and Key Features / Terms & Conditions can be obtained free of charge from JPMorgan Asset Management (UK) Limited, and the Key Information Document can be obtained from JPMorgan Funds Limited or www.jpmam.co.uk/investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.

Please enable JavaScript to continue