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Approved investment trust |
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Approved investment trustAn investment trust which satisfies certain conditions set by the tax authorities and accordingly is exempt from tax on capital gains made on profits from sales of investments within its portfolio.This ability of investment trusts to trade in and out of shares gives them an advantage over private investors who, in considering whether to sell shares, are bound to have one eye on the capital gains tax liability that they might incur.Similar MatchesPassive investment managementPassive investment managementBuying a well diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities. Real estate investment trustReal estate investment trustIn the US, a publicly traded investment trust which invests the capital of its shareholders in real estates.Some REITs, called 'Equity Reits', take equity positions in real estate, receiving income from rents and capital growth from selling buildings.Others specialise in lending money to property developers, their income coming from interest payments on those loans.Hybrid REITS do a mixture of equity investing and property lending.REITs enjoy special tax advantages provided 75% or more of their income comes from property and 95% or more of their net earnings is distributed to shareholders annually. Investment companyInvestment companyA company which invests the funds of small private investors in a range of securities. This enables fund shareholders to partake in ownership of a diversified portfolio of shares. Investment companies are classified as either open end (mutual fund) or closed end (investment trust). Investment gradeInvestment gradeA credit rating given to a government or coporate bond which indicates that the agency giving the rating (Standard & Poor's, Moody's or Fitch) thinks the issuer has strong creditworthiness.The grades used by two of the leading agencies are as follows:Moody's Aaa / S&P AAAThe highest-quality, lowest-risk bondsMoody's Aa / S&P AAHigh-quality debt obligations with minimal repayment riskMoody's A / S&P AQuality bonds with a strong capacity to pay interest and principal which are somewhat susceptible to adverse economic conditionsMoody's Baa / S&P BBBQuality bonds with a adequate capacity to pay interest and principal which are more vulnerable to adverse economic conditions bondsMoody's Ba / S&P BBMedium-grade bonds with few desirable characteristicsMoody's B / S&P BSpeculative bonds with a major degree of risk in adverse economic conditionsMoody's Caa / S&P CCCIssuers in poor standingMoody's Ca / S&P CCIssuers may be in defaultMoody's C / S&P CIncome bonds on which no interest is being paidS&P DBonds in default All those at Baa/BBB or above are adjudged 'investment grade'. Independent investmentsIndependent investmentsInvestments available to a firm that may be selected individually or in groups because each investment is different in its nature and purpose. Further SuggestionsGuaranteed investment contract (GIC)Expected return on investment Real Estate Investment Trust (REIT) Enterprise Investment Scheme Unit Share Investment Trust (USIT) Brown field investment Net investment income per share local authority investment Real Estate Mortgage Investment Conduit (REMIC) investment bond open ended investment company Undertakings for Collective Investment in Tradable Securities Investment agreement Tradepoint Investment Exchange Value Line investment survey Multilateral Investment Guarantee Agency (MIGA) Foreign investment argument for protection Investment Company with Variable Capital investment business Recognised Investment Exchange Investment value investment trust Alternative Investment Market Association of Private Client Investment Managers and Stockbrokers Finite Life Real Estate Investment Trust (FREIT) |
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