Investment trusts

Investment trust is a sort of trust which accepts money from individual investors and others, after which an investment trust management company invests the funds in property such as securities and real estate on behalf of investors, with the investment returns distributed to investors.
Trust banks act as the trustee to administer the investment trust property, utilizing the function of the management and disposal of the asset.
In addition, financial institutions such as trust banks sell beneficiary certificates of investment trusts over the counter to meet clients’ diverse asset management requirements.

Investment trusts (settlor mandated type)

Securities companies, banks, and other institutions handle subscriptions on behalf of investment trust management companies and provide money for the application received from investors to the investment trust management company.
An investment trust management company enters into a trust agreement with a trust bank and entrusts the money mentioned item 1.
The investment trust management company issues of the certificates of beneficial interests, which are provided to investors through securities companies, banks, and similar institutions.
The trust bank invests in trust property such as equities, bonds, and real estate in accordance with the instructions of the investment trust management company.
The trust bank pays cancelation fees, dividends, and redemption proceeds to the investors through the investment trust management company and securities companies and banks.

Investment trusts (Non-settlor-mandated type)

(Note): Within investment trusts, there are "settlor mandated type investment trusts," where the investment trust management company issues investment instructions to the trust bank as trustee, and "non-settlor mandated type investment trusts," where the trust bank invests at its own discretion when the investment trust management company issues investment instructions to the trust bank as trustee.