Investment Trusts

Many fund management groups who manage Investment Trusts have savings schemes to enable you to invest in shares the group’s Investment Trusts. These schemes often include the possibility to invest within an ISA, and to accept PEP/ISA transfers (please click here for PEP/ISA transfer risk warnings). Some of these schemes pay small amounts of commission (generally initial commission) if you arrange through an intermediary. Please note that in many cases this commission represents an additional charge that you would avoid by going direct to the fund manager. Clubfinance will make this clear when responding to your enquiry.

If you are interested in a scheme, let us know and we will let you know whether there is commission available. Use the form at the bottom of this page. click here to view

Note that because Investment Trusts are companies listed on the stockmarket, you can also purchase shares directly through a stockbroker. You can find more information on Investment Trusts on The Association of Investment Companies website, www.aitc.co.uk.

If commission is paid, Clubfinance can arrange your Investment Trust on an execution-only basis. Arranging your Investment Trust through Clubfinance, you will receive:

• 75% rebate of initial commissions paid to Clubfinance; and

• 75% rebate of all renewal (trail) commissions paid to Clubfinance.

Investment Trusts are generally higher risk investments and may only be suitable as medium or long-term investments. Clubfinance Ltd. offers an execution-only service; Clubfinance does not give advice or recommendations. If you have any doubts as to the suitability of a particular Investment Trust, or Investment Trusts in general and the agreement underlying it, or you require advice of any kind, you should contact another appropriate firm that does give advice.

Please refer also to the risk warnings and other information contained within the Key Features for the product that you have chosen, together with Clubfinance’s Terms of Business.

• Investment Trusts are an investment that can fluctuate in value. In addition, the income distributions from Investment Trusts (if any) can also fluctuate.

• You are not certain to make a profit; you may lose money/make a loss.

• You may not get back the full amount of your investment.

• The income from the investment is not fixed - it can go up or down, or could be zero.

• Investment Trusts may be subject to sudden and large falls in value, you could get back nothing at all.

• You may have difficulty selling this investment at a reasonable price and, in some circumstances, it may be difficult to sell it at any price. Do not invest in an Investment Trust unless you have carefully thought about whether you can afford it and whether it is right for you.

• Investment Trusts have initial charges that will reduce the value of your investment.

• Shares in an Investment Trust may trade at a discount (below the value) of the underlying assets held by the Investment Trust.

• There is an extra risk of losing money when shares are bought in some smaller companies (such as Investment Trusts) including penny shares. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them. The price may change quickly and it may go down as well as up;

• There may only be one market maker for a particular Investment Trust, and/or the only market maker may be an associate of the issuer.

• Individual Investment Trusts may use, or be able to use gearing or derivatives. This strategy may result in:

  • movements in the price of the shares being more volatile than the movements in the price of underlying investments;

  • the investment being subject to sudden and large falls in value; and

  • you getting back nothing at all if there is a sufficiently large fall in value in the investment.

• There is a restricted market for Investment Trusts, and it may therefore be difficult to deal in a Investment Trust’s shares, or to obtain reliable information about its value.

Notification Form

If you would like Clubfinance to arrange your Investment Trust please complete the online request form below and we will e-mail you the necessary information including commission and rebate details:

* - we need this in order to provide you with estimated commission and rebate details
 

Clubfinance Ltd is authorised and regulated by the Financial Services Authority. Clubfinance offers an execution-only discount broker service; Clubfinance does not give advice or recommendations. If you have any doubt about the suitability of a particular product or service, or you require advice, you should seek a personal recommendation from an appropriate firm that does give advice. Clubfinance does not produce the products it arranges, or manage the underlying investments. Payments must not be made to Clubfinance, but to the relevant product provider. Contact details for Clubfinance can be found under ‘contact us’. Users of this website should be aware of the following:

• Past performance is not a reliable indicator of future results.

• The value of investments and the income from them can fall as well as rise as a result of market and currency fluctuations. For many types of investment, you may be placing your capital at risk, meaning that you may not get back the amount originally invested and you may risk losing your entire investment.

• Some investments and policies may only be suitable as medium or long-term products.

• Tax treatments depend on your individual circumstances and may be subject to change in future.

• This website contains financial promotions relating to services offered by and products available through Clubfinance.

• In the event of any conflict between product literature and information provided by Clubfinance, the product literature shall prevail.

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