Last part of this article would highlight some of the tactics devised in order to control discount trading of investment trust. Summary at the end of this article would conclude this article. Investment Trusts Investment trusts are those types of companies, which are provided the domicile of United Kingdom such that they are listed in the London Stock Exchange. They mainly invest in the equities and securities of the companies across the world, which are listed in different stock exchanges (Redhead, 2008). These investment trusts are run by the panel of the independent directors who take care of the affairs of the investment trusts. Investment trusts are somehow different with the investment companies such that investment companies are domiciled outside the jurisdiction of UK such as Jersey or Guernsey (Redhead, 2008). Pricing of Investment Trusts The pricing of investment trusts are made based on a conceptual term named as Net Asset Value or NAV. Net asset value is the market value of all the investments held by the investment companies. Therefore, the market value of any investment trust is actually the NAV of the investments (Levy and Post, 2005). In case if the market value of the shares issued by the investment trust exceeds NAV, then this concept refers as the shares of the investment trusts are trading at a premium. ...Show more
Why do Investment Trusts trade at a Discount? This article is aimed at focusing the reasons behind the trading of investment trust shares at a discount. At the beginning of this article, investment trusts are explained along with their differences with the investment companies…
I dedicate this dissertation to my parents, brothers and sisters with my deepest love and gratitude. To my wife and kids, I couldn’t have done this without your unfading encouragement and support. I must thank you for being patient. To my best friend, Khalid, thank you for your full support and encouragement.
Acknowledgements The author is especially grateful to (mentor/advisor’s name) for all the patience and guidance displayed for the duration of the this research. Abstract In the aftermath of the breakdown of Communist Europe, a majority of Central and Eastern Europe are currently characterized as transition states as they transition from socialist states to market-based economies (Centeno 1994, 125).
In the United States, the trend is the same: over 60 percent of stocks are controlled by this type of investor (Burton and Brown, pp.223). The OECD also reported that in its member economies, institutional investors are growing on average of 9 percent per year since the 1990s (OECD, 2000, pp.195).
This is a tax-free method of saving which includes government agencies and self-funded schemes among others; they vary as some organizations may have disability pensions among other benefits which are mainly to the advantage of the employer. Introduction Pension can be defined as a contract of an employee for a fixed amount of money that is payable on a regular basis upon retirement from work (Redhead 2003, pg.
Institutional investment is an investment related to organized institutions. Such institutions are caretakers of others’ equities and private holding investments. The role of institutions is deliberate as they set a system of organizing, developing and managing respective funds.
However, overtime, there have been considerable changes in the residential sector in the UK. Increasingly, there is institutional engagement with the residential sector from various fronts. Despite these changes however, there is relatively low response among the concerned parties in the sector.
The review of the two will give an insight to the worthwhile investment that a potential investor can decide to offer his capital. Actively managed funds do have a benchmark that a manager or a team making the decisions look for in the underlying portfolio allocation in order to follow a passive investment strategy as in this case managers would pick on such funds with the sole aim in mind that could be beating a particular index while assuming a set return level and at the same time watching that the risk does not surpass a set level.
A society is a group of people who get together and share a common goal, whilst a business is an artificial (something created or put together, as opposed to a natural, or existing in nature, society) form of social organisation that fulfils three main goals: it keeps the person who created it busy, it provides the same person some income, and it provides society with a product or service that meets a need.
tutional investors who invest in securities include insurance companies, banks, mutual funds, hedge funds, pension funds, investment advisors and operating companies that invest a percentage of their profits on investment assets. According to Deng and Xu (2011), institutional
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