The role of Investment Trusts in the capital market
An Association of Investment Trust Companies (AITC) case study

Page 10: Conclusion

Investment Trusts play a vital role in helping well-managed businesses to secure finance. At the same time they provide attractive opportunities to many investors - from young adults saving for their future, to parents saving for their child's education or to provide an income for those already in retirement. They also provide a service to large financial institutions that are responsible for providing income and growth for pension funds and other investments.

The fund manager plays a vital role in delivering returns to shareholders. Fund Managers constantly keep their shareholders in mind, knowing that their own performance is judged daily by the value of the Investment Trust, which is reported on in the financial press and through other media. Fund managers need to have a keen understanding of all that is happening in the world that affects the economy, including political, social and technological changes.

In addition, the Investment Trust must produce a formal annual report to shareholders once a year, hold an annual general meeting for shareholders to express their views once a year, as well as regularly communicate with shareholders eg newsletters or updated reports on the company's web-site.

Association of Investment Trust Companies (AITC) | The role of Investment Trusts in the capital market


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