Investment Trusts Explained

Investment Trusts Explained by Mick Gilligan presents investment trusts as an innovative and accessible investment vehicle with a long and successful performance history. Despite this, they are often called a "best-kept secret."

In Investment Trusts Explained, Mick Gilligan, a renowned expert on investment trusts and partner at Killik & Co, aims to demystify them for all investors. He unveils the world of investment trusts, covering their history, dynamics, risks, and benefits.

Gilligan explains how information is conveyed from the board and portfolio managers to investors via stock exchange announcements, the annual report, and various media. He also addresses regulation, market pricing, taxation, and key structural benefits of investment trusts, such as gearing, the ability to hold illiquid assets, and the potential to enhance shareholder value by issuing and buying back shares.

Understanding key investment principles is crucial for maximising the benefits of investment trusts. These principles include compounding, diversification, pound-cost averaging, the discount rate, the equity risk premium, the illiquidity premium, price discovery, and capital allocation. Gilligan uniquely covers these topics through the perspective of an investment trust investor.

Throughout the book, Gilligan employs practical examples and clear explanations to make readers feel more comfortable and informed about investment trusts.

Whether you are saving for a particular goal, planning towards retirement, or seeking to maximise your capital, investment trusts are fundamental tools for building wealth over time. They should be an integral part of all serious portfolios for long-term investors.