Investment trust and fund launches
What are investment trust & fund launches?
Similar to other IPOs Investment trusts and funds will come to the market from time to time and through their prospectus highlight their investment strategy and income proposition. Investment Trusts are companies that are domiciled in the UK and invest in shares and securities of other companies globally. They are listed on the London Stock Exchange and therefore freely tradable on the open market.
Why invest in investment trusts and fund launches with us?
- Pay no commission on your investment
- Get access to the best deals, from private company offers through to large cap, investment trusts and retail bonds
- Get access to IPOs exclusive to us
- Our track record for timely execution and stock delivery
How do investment trusts and funds compare against running your own portfolio?
|Investment Trusts||Funds (Unit Trusts and OEICs)||Running your own portfolio|
|Wide spread of risk||Yes||Yes||Yes|
|Professional investment management||Yes||Yes||No|
|Income, growth or both||Yes||Yes||Yes|
|Often available at discount||Yes||No||No|
|Can borrow to maximise opportunities||Yes||No||Yes|
|Does not have to sell assets to repay investors||Yes||No||No|
|Independent board of directors||Yes||No||No|
How do investment trust and fund launches work?
From a potential investors' point of view Investment Trust & Fund launches follow a similar process to equity IPOs, as set out below:
- Intention to Float - The company officially announces its intention to float, which contains the highlights of the initial public offering proposal. Institutions and retail brokers will already have been invited to participate and be working behind the scenes to prepare the Offer for their customers.
- Prospectus and KID released - The investment company will prepare and release a Prospectus and a KID (Key Information Document) which investors should fully read and digest before making any decision to invest.
- Offer Period – From the point the Prospectus and KID are released the Offer Period begins. This is the book building period when orders can be placed and may last only a few days or several weeks.
- Result of Issue – Usually within a couple of days of the Offer Period ending the Company announces the result. Over demand for shares in new Investment Trust launches may result in a smaller number of shares being allocated than were ordered. Fund launches are not typically scaled back.
- Admission – The new stock is admitted to the market and unconditional trading commences.