5

Useful investing miscellany

There are some other useful terms and factors that we should cover. Taken together, they can help to inform and thereby increase the chances of getting investment decisions right.

Directors’ and managers’ shareholdings

As with any public company, it is reassuring for investors to see that those closest to the investment trust have a stake in the company. The larger the stake the better: the interests of investors and those running the trust are more closely aligned. So potential investors should look in the report and accounts, where directors’ shareholdings are listed, and ascertain whether these directors increased or decreased their stakes over the year.

The actions of fund managers – and not just their warm ...

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