The website is directed only at Professional Clients in the UK. The website is issued by Asset Value
Investors Limited (“AVI”), in respect of AVI Japan Opportunity Trust plc (“AJOT”). AVI is authorised and
regulated by the UK Financial Conduct Authority (“FCA”). AJOT is a public company listed and traded on the
London Stock Exchange.
You agree that we may contact you about our products and services that we believe you might be interested
The price of the Shares will be determined by supply and demand in the market as well as by changes in NAV
per Share. The market price of the Shares is therefore likely to fluctuate and may represent either a
premium or discount to NAV per Share.
They are quoted companies listed on the London Stock Exchange with Boards of Directors; they are subject to the listing rules of the UK Listing Authority established under the Financial Services and Markets Act. ‘Investment Trusts’ are also subject to the Companies Act 1985, as amended. The conduct of investment managers in promoting packaged products (‘ISA’, Share Plans) with underlying investment trust investments are regulated by the FCA.
What Does Gearing Mean?
Investment trusts can borrow money and invest the proceeds. This will magnify returns to investors in a rising market (and vice versa in falling markets). This is known as financial gearing. Typically the ‘gearing’ is described as a ratio (of borrowing to assets) – a gearing factor of 120 means that on a trust with equity of £100 million it has £20 million of debt (bank borrowings).
How Many Investments Are Held Within An Investment Trust Portfolio And How Are They Managed?
Typically anything from 50 to 100 shares. The ‘Fund Manager’ must have regard to the objective of the trust. To that end the underlying stocks are bought or sold to deliver either capital growth or income. Within those portfolios the managers will assess the stocks on a regular basis to ensure that they will deliver the objective, hopefully selling in advance of profit warnings or any other adverse market change that could impact on either the ability to deliver income or capital appreciation. Sometimes that can’t be achieved; that’s why ‘investment trusts’ have a spread of investments.
What Is The Spread For An Investment Trust And Who Actually Sets This, Also What Is The Standard Spread? And Does This Spread Include The Government Stamp Duty Or Not?
The spread is set by the marketmakers. There is no standard spread, it depends on the ‘liquidity’ of a particular stock, but in the case of British Empire the average spread is 0.22% *. It does not include stamp duty which is a tax at 0.5% of the value of all share purchases.
* as at 28th February 2015
The Yields As Quoted In The Financial Times, Which Are The Standard Quoted On Advertisements, How Do They Actually Calculate Them?
The dividend yield is the last 12 months dividends (historic) divided by the share price.
Is The Discount/ Premium Of A Share Calculated On The Shares, Mid Price/Bid Price/ Or Offer Price?
All are calculated with reference to the previous closing mid price.
What Service Does The Company Secretary Perform For An Investment Trust?
The company secretary has the responsibility for co-ordinating all aspects of the investment trust to ensure that it complies with its legal and financial reporting including any circulars etc., report and accounts, interim reports; convening board meetings, minutes and follow up there from, as well as liaison with the Board and external advisers.
What Service Does The Board Of Directors For A Trust Perform?
The Board is responsible to shareholders; it oversees the external relationships, principally the fund management relationship, to ensure that the trust’s objective is met.
What Role Do The Registrars Perform?
Under the Companies Act all public companies must maintain a register of their shareholders to record title to the security; to determine entitlement to dividends or capital distributions.
AVI Japan Opportunity Trust p.l.c is referred to as ‘AJOT’ throughout the website. AJOT’s investment managers, Asset Value Investors are referred to as ‘AVI’