Training Courses

Investment Trusts Workshop

Category: Investment Products

Course level: Introductory to Intermediate

In house

This 3-hour workshop provides a broad-based understanding of closed-ended investment trusts. It will cover the regulations, valuation and promotional restrictions.

Case studies form an integral part of the course to enable delegates to consolidate the information and provide the basis for group discussions. All the case studies will focus on the firm’s fund range of investment trusts, using fund fact sheets, pricing data and marketing literature.

Objectives

By the end of this workshop, delegates will have a more complete understanding of:

  • the structure of closed-ended funds in the UK market
  • capital structure
  • the regulatory environment and marketing restrictions for investment trusts
  • the listing regime
  • NAV calculation vs market price
  • statutory reporting requirements

Length

3 hours

Course Content

Introduction

What is an investment trust?
Types of investment trust
    General trusts
    Specialist trusts
    Split capital trusts
Case study: What investment trusts does your firm offer?
Case study: Looking at a fund fact sheet

Constitution of investment trusts

Articles of Incorporation
Prospectus
Board of Directors


Capital classes and gearing


Share classes
    Ordinary shares, preference shares, Zero Dividend
    Preference shares (ZDPs)
    Capital shares, income and residual shares
New share issues
Share buybacks
    Paying for shares using the share premium reserve
    Treasury shares – relevant legislation and tax impact
Debt and gearing
    Debentures
    Warrants
Split capital trusts – specific issues
    Structure, risks, required risk warnings
    New COBS rules and risk warnings
        FSA CP 164 and AIC briefing note 

Fund distribution

Role of financial advisers
FSA Financial Promotion Regime
FSA Listing Rules

Fund pricing

Valuing the holdings
Calculating the NAV
Accruals
Market price
Discount vs premium to NAV
Case study: Calculating the NAV of an investment trust
Case study: Looking at the investment trust prices of your firm

Fund accounting

Structure of fund accounts
    Income statement, balance sheet, cash flow statement,
    directors’ reports
    Impact of IFRS
Case study: Annual statement for one of the firm’s funds

 

This course would be suitable for:

  • Client services and call centres
  • HR and training
  • Investment administration and operations
  • IT and software developers
  • Legal & Compliance
  • Sales and marketing
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