Each quarter, we check in on the returns of UK-listed investment trusts.
In the third quarter, trusts focused on bonds, precious metals and natural resources stocks were among the strongest performers.
Acuity RM Group ACRM was the best-performing investment trust in the third quarter, up 86.21% on a share price basis. Over the past 12 months, the trust has gained 50.00%.
Here’s a closer look at each of the 10 best performers.
The Best-Performing Investment Trusts
Acuity RM Group ACRM
- : Other BondMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -71.28%
The £14.5 million Acuity RM Group Trust rose 86.21% on a share price basis over the quarter. The trust, managed by Energiser Investments, is trading at a 71.28% discount to its net asset value (NAV) and has not been awarded a Morningstar Medalist Rating. Launched in June 1997, the trust’s share price has grown 50% over the past year, against a NAV which has stayed flat. Over a five-year annualized period, the trust’s share price has fallen 24.49% while the NAV has grown 4.90% on average.
Golden Prospect Precious Metals GPM
- : Equity Precious MetalsMorningstar Category
- Ongoing Charge: 1.99%
- Premium/Discount: -4.56%
The £95.2 million Golden Prospect Precious Metal Trust rose 21.72% on a share price basis over the quarter. The trust, managed by CQS, is trading at a 4.56% discount to its NAV and has not been awarded a Morningstar Medalist Rating. Launched in November 2006, the trust’s share price has grown 31.76% over the past year, against a NAV which has grown 24.54%. Over a five-year annualized period, the trust’s share price has grown 23.03% while the NAV has grown 20.42% on average.
City Natural Resources Growth and Income CYN
- : Equity Natural ResourcesMorningstar Category
- Ongoing Charge: 2.00%
- Premium/Discount: 6.49%
The £153.3 million City Natural Resources Growth and Income Trust rose 21.45% on a share price basis over the quarter. The trust, managed by Tufton Investment Management, is trading at a 6.49% premium to its NAV and has not been awarded a Morningstar Medalist Rating. Launched in June 2003, the trust’s share price has grown 46.62% over the past year, against a NAV which has grown 38.56%. Over a five-year annualized period, the trust’s share price has grown 30.02% while the NAV has grown 21.82% on average.
Molten Ventures GROW
- : Venture CapitalMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -7.89%
In the third quarter, the £1.3 billion Molten Ventures Trust rose 20.59% on a share price basis and was trading at a 7.89% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has gained 81.35% against a NAV growth of 4.97%. Over a five-year annualized period, the trust’s share price has fallen 7.00% while the NAV has fallen 2.80% on average. The trust is managed by Elderstreet and has not been awarded a Morningstar Medalist Rating.
Syncona SYNC
- : Alternative OtherMorningstar Category
- Ongoing Charge: 1.84%
- Premium/Discount: -27.43%
The £1 billion Syncona Limited Trust rose 19.04% on a share price basis over the quarter. The trust, managed by Syncona, is trading at a 27.43% discount to its NAV and has not been awarded a Morningstar Medalist Rating. Launched in October 2012, the trust’s share price has grown 25.30% over the past year, against a NAV which has grown 1.55%. Over a five-year annualized period, the trust’s share price has fallen 5.99% while the NAV has fallen 0.13% on average.
Greencoat UK Wind UKW
- : Infrastructure DirectMorningstar Category
- Ongoing Charge: 0.83%
- Premium/Discount: -12.11%
The £2.8 billion Greencoat UK Wind Trust rose 16.44% on a share price basis over the quarter. The trust, managed by Schroders, is trading at a 12.11% discount to its NAV and has not been awarded a Morningstar Medalist Rating. Launched in March 2013, the trust’s share price has grown 14.62% over the past year, against a NAV which has grown 2.93%. Over a five-year annualized period, the trust’s share price has grown 5.18% while the NAV has grown 7.44% on average.
Octopus Titan VCT OTV2
- : Venture CapitalMorningstar Category
- Ongoing Charge: 2.30%
- Premium/Discount: -51.25%
In the third quarter, the £726.9 million Octopus Titan VCT Trust rose 16.22% on a share price basis and was trading at a 51.25% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has fallen 12.24% against a NAV decline of 3.61%. Over a five-year annualized period, the trust’s share price has fallen 23.68% while the NAV has fallen 12.62% on average. The trust is managed by Octopus and has not been awarded a Morningstar Medalist Rating.
Odyssean Investment Trust OIT
- : UK Small-Cap EquityMorningstar Category
- Ongoing Charge: 1.49%
- Premium/Discount: 2.83%
In the third quarter, the £338.4 million Odyssean Investment Trust rose 15.38% on a share price basis and was trading at a 2.83% premium to its NAV at the end of the quarter. Over the past year, the trust’s share price has gained 52.38% against a NAV growth of 39.50%. Over a five-year annualized period, the trust’s share price has grown 8.05% while the NAV has grown 8.20% on average. The trust is managed by Odyssean and has not been awarded a Morningstar Medalist Rating.
Baillie Gifford US Growth USA
- : US Flex-Cap EquityMorningstar Category
- Ongoing Charge: 0.70%
- Premium/Discount: -3.54%
In the third quarter, the £1.1 billion Baillie Gifford US Growth Trust rose 15.02% on a share price basis and was trading at a 3.54% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has gained 41.59% against a NAV growth of 32.61%. Over a five-year annualized period, the trust’s share price has grown 3.79% while the NAV has grown 3.73% on average. The trust is managed by Baillie Gifford and has not been awarded a Morningstar Medalist Rating.
Rights and Issues Investment Trust RIII
- : UK Small-Cap EquityMorningstar Category
- Ongoing Charge: 1.00%
- Premium/Discount: -17.87%
The £138.4 million Rights and Issues Investment Trust rose 13.30% on a share price basis over the quarter. The trust, managed by Jupiter, is trading at a 17.87% discount to its NAV and has not been awarded a Morningstar Medalist Rating. Launched in July 1962, the trust’s share price has grown 19.32% over the past year, against a NAV which has grown 17.99%. Over a five-year annualized period, the trust’s share price has grown 0.58% while the NAV has grown 2.35% on average.
How We Calculate UK Investment Trust Returns
There are two main ways to calculate investment trust performance. With real-time pricing it’s easy to see the daily share price. Another way is to look at the net asset value, or NAV, which is the value of the trust’s underlying assets. The share prices trade at a discount or premium to their NAV, a measure of whether trusts are in or out of favor with investors.
Data in this article is taken from Morningstar Direct.
- Net asset value is determined by taking the change in NAV at the end of the period, reinvesting all income and capital gains distributions during that period, and dividing by the starting NAV.
- Share price, or market-price return, is calculated by taking the change in the trust’s close market price, reinvesting all income and capital gains distributions at the ex-date during the period, and dividing by the starting close market price.
- Discount is based on the ex par NAV, which excludes income and assumes debt repayments are made at par value.
