This is our personal list of favourite investment trusts that are on our buy list.
It is important that you are aware that this is not and cannot be a recommendation for you to buy personally. We cannot comment on how suitable these recommendations might be for your personal circumstance.
Your capacity for loss together with your attitude to invest risk and investment time horizon are among considerations you need to make on your own or with your family or with an independent financial adviser.
Most importantly of all, all of our fund reviews are from the perspective of an investor because that is what are. An important caveat to this though is that we are long term investors and all our recommendations are from a long term perspective. By long term we mean from FIVE to TEN years or more.
Reviewing investment funds is a lengthy process. Several days of research can go in to producing a report on a single fund or whole sector.
We are fortunate to be able to meet and interview many successful investment trust managers. However most of our analysis is concerned with studying balance sheets, Annual report and accounts, fundamental data such as the metrics charts you’ll find in all of our fund reviews and comparison to peers. Industry statistics, independent research and analysis of trends in society both locally and around the world.
We use Stockopedia for detailed analysis of the accounts of investment trusts going back several years.
Our buy list is and will continue to be a dynamic list of changing investment propositions, not usually changing because of macroeconomic issues, we won’t even pretend we can predict with any sort of certainty what’s going to happen there. The list will change in accordance to a careful evaluation process of each of the favoured funds on this page.
Model Portfolios – These are groups of investment products carefully selected to meet a particular investment need such as a group of dividend paying trusts for investors with an income need, to express it simply.
We don’t produce model portfolios here but John Baron, is a former stockbroker who makes available several different model portfolios in his regular column in Investors Chronicle and on his website which you can find here (opens in a new window).
UK All Companies Sector:
UK Equity Income
Troy Income & Growth – Ran on an Absolute basis (meaning it seeks to make you money rather than bask in beating an index whilst still losing money). Troy was set up by the late Lord Weinstock and is conservatively ran. It typically has lower volatility than the overall market and good long term performance.
City of London Investment Trust – Has the longest record of consecutive dividend increases, this conservatively run fund has a record of beating the market whilst taking lower risk. Read manager Job Curtis’ profile here.
Lowland Investment Company – Managed by James Henderson. With a portfolio of equities somewhat different to similar investment trusts, Lowland can help diversify investors risk as well as being a very good long term performer.
Diverse Income Trust – Gervais Williams has a good long term track record managing money. Holders of other trusts in this sector might appreciate the varied collection of stocks he holds, many in the small and mid cap sphere & which are complementary to other trusts.
Edinburgh Investment Trust – Managed by Mark Barnett of Invesco Perpetual Bartlett
Standard Life Equity Income – Managed by Thomas Moore
Invests across more areas of the market than many of his peers, which makes this trust complementary to them. He hasn’t been in the job as long as some but his performance has been solid.
UK Smaller Companies
Aberforth Smaller Companies – Unlike some of its competitors, a true smaller companies fund that sticks to its knitting even when the market isn’t feeling the love for smaller companies. Periods of under-performance will always occur as a result but its managers are skilled in finding cheap smaller companies that will at some point outperform.
Henderson Smaller Companies – One of the largest in its sector, and one of the oldest investment trusts, managed by Neil Hermon for over a decade, it has been a top performer throughout.
UK Equity & Bond Income
Henderson High Income – Managed by Alex Crooke/David Smith
This is on our list for its 5% yield, which is one of the highest in the sector, and delivered from a mix of equities and bonds.
North American Income Trust – Managed by Paul Atkinson from Aberdeen’s Philadelphia base
Equity income fund but with the ability to invest in Bonds too. At time of writing it’s value investment style is just coming in to vogue. Last reviewed May 2014.
Global Equity Income Flexible Investment
Murray International Investment Trust – Managed by Bruce Stout from Aberdeen Asset Management
Ruffer Investment Company – The hedge-fundesque strategies employed by Ruffer management have not only offered investors a high degree of protection against market falls, it’s delivered returns far in excess of its target of twice Bank of England base rate over the long term.
The Scottish Mortgage Investment Trust
Managed by James Anderson of Baillie Gifford
Personal Assets – Conservatively managed with a focus on capital preservation, and with a concentrated portfolio of investments.
Edinburgh Worldwide Investment Trust – Bias towards smaller entrepreneurial companies with the potential to revolutionise their industries. Managed by a trio of managers lead by Douglas Brodie.
Martin Currie Global Portfolio – Managed by Tom Walker
Targets a zero discount policy and is conservatively managed with good performance and appeal to the investors with a more cautious bent.
Witan Investment Trust – Fund-of-Funds Managed by Andrew Bell
Rather than invest its money itself Witan invests with some of the best fund managers across the world, many you could not access as a small investor and it has unusually low fees for a fund with this structure.
Seneca Income & Growth Trust – Applies ‘Value’ style investing to global Multi-asset’s. Since the investment mandate changed a few years ago performance has been strong, with less volatility (risk) than the overall market. Plus it has a handsome and growing dividend.
Global Emerging Markets
BlackRock Frontiers Investment Trust – Managed by Sam Vecht and Emily Fletcher, and launched in 2010, it has been a strong performer since launch with less volatility than you might expect.
Asia Pacific – Excluding Japan Sector
Scottish Oriental Smaller Companies Trust
Managed by a team including Angus Tulloch at from First State Stewart Investments in Edinburgh and Hong Kong, this smaller companies focused trust tremendous long term performance.
Aberdeen New Dawn Investment Trust – Managed by a team headed by Hugh Young from Singapore, this trust invests across the region in a conservative fashion that has the habit of producing fantastic long term results.
Asian Total Return – Experienced management team took over this trust in March 2013. Initial performance was poor but the team have a great long term record managing the strategy elsewhere.
Jupiter European Opportunities Investment Trust
Managed by Alexander Darwall from Jupiter Asset Management and the top performing fund in its sector. Another example of an investment trust that easily beats its open ended unit trust equivalent, even though it has the same manager.
Henderson European Focus
John Bennett is a manager with good form in running European portfolios, with frequently top quartile performance.
Baillie Gifford Japan Trust – Even in years when investment returns have been poor in Japan this trust has delivered positive returns. With exposure to larger companies than stable-mate Shin Nippon this should be a core holding for investors seeking exposure to Japan. Last reviewed January 2014.
Japanese Smaller Companies
Shin Nippon Investment Trust (Baillie Gifford).
Manager John MacDougall has a long track record of finding successful smaller Japanese companies exposed to Healthcare for Japan’s ageing population and technology and export led stocks.
3i Infrastructure – Energy and rail infrastructure dominate here but it also as a holdings in 3i India and a group of PFI projects operating schools etc
Pantheon International (PIP) – Fund-0f-funds trust that invests selectively in Pantheon funds worldwide, and with very good long term returns.
HgCapital Trust – provides exposure to a diversified portfolio of private equity investments primarily in the UK and Continental Europe.
DBAG (Deutsche Beteiligungs) – Has been Investing in the heart of German industry for over four decades. With solid long term performance and shareholder friendly policies, this is a top pick in the directly investing sector.
Technology, Media & Telecoms (TMT)
Herald Investment Trust – Small & medium sized TMT trust with a large overweight to the UK. Manager Katie Potts has a long and successful track record.
Allianz Technology Trust – Managed by Walter Price, who has been investing in Tech companies for over four decades from his San Francisco base. Since winning the investment mandate this trust has been amongst the top performers across closed and open ended Tech-funds.
Healthcare & Biotechnology
Fixed Interest & Debt
Henderson Diversified Income – A strategic Bond and loan fund able to allocate its assets to whichever part of the market the managers find value. Managed by Henderson’s successful fixed interest team.
TR Property Investment Trust – Diversified Pan-European investor in both property shares and to a much lesser extent direct property. With performance its competitors envy, it’s easily our pick of the sector.
WhichInvestmentTrust.com Disclaimer should always be referenced with all of our articles. If you haven’t read it please do so now.