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Real Estate Investment Trust (REIT) |
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Real Estate Investment Trust (REIT)REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund.Real Estate Investment Trust (REIT) Similar MatchesFinite Life Real Estate Investment Trust (FREIT)Finite Life Real Estate Investment Trust (FREIT)A Real Estate Investment Trust whose priority is to sell its holdings within a specified period to realize capital gains. Investment trustInvestment trustA company quoted on the London Stock Exchange which invests its shareholders' funds in the shares of other companies.Points to note about investment trusts are:They enable private investors with limited funds to get diversified share ownership and without incurring heavy dealing costs.They enable investors to get exposure to markets that they may not be able to reach themselves (e.g. to emerging countries). Different trusts also have differing objectives (e.g. growth or income).They enable investors who don't have the skill or inclination to invest directly in companies to get the advantage of professional fund management (although see point below 6)It is easy for investors to drip-feed money into investment trusts over time by using a monthly savings plans.Unlike unit trusts, investment trusts are closed end funds. That is, there is a fixed number of shares in circulation, and the price of those shares is determined like other quoted shares - by supply and demand. This means that IT shares often trade at a discount to their Net Asset value (i.e. the value of their underlying investments) and it also makes IT shares more volatile than unit trust prices.ITs are actively managed funds which try to produce total returns better than the market average. However once management charges are taken into account, they often fail to meet this target. Hence the move by many investors to passive funds - trackers and index funds - which have lower charges. Registered investment adviserRegistered investment adviserSEC-registered individual or firm that substantiates completion of education and work experience in the field, and pays an annual membership fee. Investment businessInvestment businessThe Financial Services Act 1986 defines investment business to include dealing, arranging deals in, managing and advising on investments in addition to the setting up and operation of collective investment schemes. Reinvestment effectReinvestment effectThe impact of a change in interest rates on the reinvestment rate. Further SuggestionsInvestment advisory serviceUndertakings for Collective Investment in Tradable Securities Investment certificate investment club Investment bank alternative investment Investment Company with Variable Capital Foreign direct investment (FDI) Investment software Systematic investment plan Unit Share Investment Trust (USIT) Investment climate Investment manager Investment opportunity set Investment management Net investment Regulated investment company Direct investment local authority investment Municipal Investment Trust (MIT) Reinvestment risk Investment history Securities and Investments Board Brown field investment Future investment opportunities |
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