Aberdeen has established a strong reputation for expertise in investment trusts. We now manage or advise on over £14.8 billion* of closed end assets worldwide. Many investors already have exposure to major stock markets through general trusts. Specialist investment trusts, such as those in the Aberdeen range, permit investors to diversify their portfolios by making investments in areas that may be difficult to access directly.
An investment trust is a company that invests in other companies. An investment trust may hold shares in a wide range of different companies at any one time. A trust typically holds 40-60 underlying stocks with no stock usually comprising more than 10% of the total portfolio.
Each investment trust is an independent company with its own Board of Directors who are responsible for setting strategy, monitoring performance and who are answerable to their shareholders. They employ professional investment managers who constantly monitor their investment universe, deciding what companies to invest in and when to buy and sell shares.
Investment trusts also benefit from their 'closed-ended' structure which enables the managers to take a long-term view of their investments rather than being obliged to hold cash in reserve to meet potential redemptions. Investment trusts are also capable of borrowing in order to finance further investments. The capacity for 'gearing' allows the investment manager greater flexibility to increase exposure to companies in market conditions they find favourable.
Some Investment Trusts, known as 'split capital trusts or splits', can issue more than one class of share, giving the investor the choice of higher than usual income or higher than usual capital growth within the same trust.
*Source: Aberdeen Asset Management as at 31 December 2016
ISAs were introduced in April 1999. An ISA is a 'wrapper' which, under current legislation, allows your savings to grow free from income or capital gains tax (whatever your rate).
There are two different types of ISAs, Stocks & Share and Cash. You can only have one Stocks and Shares manager for each tax year, Aberdeen Investment Trusts do not offer a cash ISA.
Find out how to invest in an ISA.
Everyone wants the best for their children. So why not get real investment expertise working on their behalf?
Proceeds from a Childrens saving plan can be use for any purpose you wish – from helping to pay for childcare to funding school fees, university costs or a deposit on a first home.
If you gift money to your child, there may be income or inheritance tax implications which you will need to consider. Although children have their own personal income tax allowances which are the same as adults, if the income generated is from money that was given or invested by parents, then tax will still be due upon it. See our FAQs section for more information on the tax implications of investing for children.
Whatever your ultimate savings goal, there are a great many different products on offer, and quite a lot of things to consider when saving on behalf of a child. Our FAQs on investing for children provides some useful questions and answers.
You can invest in our range of trusts through The Aberdeen Investment Plan for Children.
If tax efficiency isn’t an issue – or if you’ve already invested your ISA allowance – then a Share Plan is the way for you to invest. Quite simply it buys and sells shares on your behalf using a secure nominee account. You can invest as much as you wish either in one-off lump sums or by making monthly contributions by direct debit.
Find out how to invest in the Aberdeen Investment Trust Share Plan.
Aberdeen UK Tracker Trust: aims to track the FTSE All-Share Index in terms of capital and income.