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British & American Investment Trust Plc

British & American Investment Trust Plc

Sector: Unit Investment Trusts, Face-Amount Certificate Offices, and Closed-End Management Investment Offices Region: United Kingdom


: | London Stock Exchange: BAF


Similar to: Japan Equity Fund, Inc., Scottish Mortgage Investment Trust PLC, Nuveen Quality Preferred Income Fund 2

British & American Investment Trust Plc is a self-managed closed-end fund. It invests predominantly in investment trusts and other leading UK quoted companies to achieve a balance of income and growth. The company acts as a long-only investment vehicle in recognition of its status as an authorized investment trust and parent of a group of companies comprising two other investment companies and a film investment company. The company does not utilize gearing in its portfolio but does on occasion make use of derivative instruments to hedge exposures to particular investments or markets. Historically, investments in other investment trusts have accounted for approximately 50 percent of the total portfolio with the balance being invested in a selection of leading quoted companies to provide opportunities for capital growth and income generation. These other investments have often been concentrated in a small number of companies, typically in the finance, property, insurance and leisure sectors and have individually represented as much as 10 to 15 percent of the portfolio. The investments in investment trusts are spread over a wide number and variety of trusts including UK, generalist, specialist, income, overseas and split capital trusts in order to respond to the objectives of the stated investment policy. Generally, for the larger of such investments, trusts offering exposure to both the UK and US markets, a discount greater than 5 percent and a yield in excess of the benchmark yield is sought. Portfolio performance in capital and income is measured and reported against the FTSE 100 and All Share Indices and relative performance against AIC peer group members is monitored. The company's objective is to achieve a balance to investors of growth in income and capital in order to sustain a progressive dividend policy. The policy of the investment portfolio is predominantly quoted UK investment trusts and other leading companies; other investments include overseas equities, bonds, indirect holdings in UK commercial property and the rights to receive royalties from certain longstanding commercial films. The property portfolio currently consists of an indirect partial interest in 2 commercial properties, situated outside of London, through Enterprise Zone Trusts. The company was organized in 1947 and is located in London.

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