Your interests protected

Investment trusts aren't like other funds.  Each investment trust is a stock market listed company whose sole purpose is investing its shareholders' money to grow their wealth. As a listed company, every investment trust has an independent board of directors.

What does the independent board do?

The board of an investment trust is there to look after your interests as a shareholder. Most boards hire a manager to run the investment portfolio from day to day. They negotiate the manager's fee and monitor performance to make sure your investment is running smoothly.

What does independent mean for an investment trust board?

Every investment trust board is independent of the manager that runs the portfolio on a daily basis. They have the power to hire and fire the manager. That means they can hold the manager to account. 

How do I have my say as a shareholder?

As a shareholder, you can vote on key issues facing the investment trust. You can also go to annual general meetings (AGMs) and ask the board and the manager questions. Shareholders vote to re-elect the directors on the board at regular intervals.

What's the point of having an independent board?

The independent board of directors helps to put shareholders' interests at the heart of how investment trusts are run. The board has the power to remove the manager if performance isn't good enough, which allows them to defend your interests as a shareholder. Other funds simply don't work like this: the manager is in charge and there's limited opportunity for you to have a say.