What is the difference between an investment trust and an investment company?

An investment trust is a fund created when an asset management company (the settlor) enters into a trust agreement with a trust company (the trustee); the asset manager gives management instructions, and the trust company holds and administers the assets.

An investment company is a fund in the form of a stock company under the Commercial Act; investors become shareholders, and the company is a paper company with no full-time officers or employees that entrusts management, custody and administration to outside firms.