The Best-Performing Investment Trusts in July

Each month, we check in on the returns of UK-listed investment trusts.

In July, private equity and flexible allocation investment trusts were among the strongest performers.

Potentially AI AGI was the best-performing investment trust in July, up 30.48% on a share price basis. Over the past 12 months, the trust has fallen 54.33%.

The largest UK-listed investment trust, 3i Group III was the third-best performer in July, helped by a strong set of first quarter results. Flexible allocation trust RIT Capital Partners RCP was also among the top 10 best-performing investment trusts for the month of July, along with Fidelity Special Values FSV which has a Morningstar Medalist Rating of Gold.

Here’s a closer look at each of the 10 best performers.

The Best-Performing Investment Trusts

Potentially AI AGI

• Morningstar Category
  : EAA CE Other
• Ongoing Charge: None
• Premium/Discount: 71.25%

The £15.3 million Potentially AI trust rose 30.48% on a share price basis over the month. The trust, formerly known as Tiger Alpha, is trading at a 71.25% premium to its NAV and has not been awarded a Morningstar Rating. Launched in January 2001, the trust’s share price has fallen 54.33% over the past year, against a NAV which has stayed flat. Over a five-year annualized period, the trust’s share price has fallen 29.74% while the NAV has fallen 32.71% on average.

Tooru TOO

• Morningstar Category
  : EAA CE Other
• Ongoing Charge: None
• Premium/Discount: -70.18%

In July, the £24.6 million Tooru trust rose 17.24% on a share price basis and was trading at a 70.18% discount to its NAV at the end of the month. Over the past year, the trust’s share price has fallen 17.07% against a NAV that was flat. Over a five-year annualized period, the trust’s share price has fallen 37.84% while the NAV has fallen 17.49% on average. The trust has not been awarded a Morningstar Rating.

3i Group III

• Morningstar Category
  : EAA CE Private Equity
• Ongoing Charge: None
• Premium/Discount: -5.63%

In July, £29.7 billion 3i Group rose 15.21% on a share price basis and was trading at a 5.63% discount to its NAV at the end of the month. Over the past year, the trust’s share price has fallen 28.72% against a NAV growth of 16.00%. Over a five-year annualized period, the trust’s share price has grown 20.97% while the NAV has grown 27.89% on average. The 3i trust has not been awarded a Morningstar Rating.

RIT Capital Partners RCP

• Morningstar Category
  : EAA CE GBP Flexible Allocation
• Ongoing Charge: 0.73%
• Premium/Discount: -18.80%

The £3.9 billion RIT Capital Partners trust rose 12.01% on a share price basis over the month. The RIT Capital trust is trading at a 18.80% discount to its NAV and has a Morningstar Rating of 4 stars. Launched in August 1988, the trust’s share price has grown 34.37% over the past year, against a NAV which has grown 16.54%. Over a five-year annualized period, the trust’s share price has grown 2.06% while the NAV has grown 5.07% on average.

Greencoat UK Wind UKW

• Morningstar Category
  : EAA CE Infrastructure Direct
• Ongoing Charge: 0.83%
• Premium/Discount: -14.85%

The £2.8 billion Greencoat UK Wind rose 10.14% on a share price basis over the month. The Schroders-managed trust is trading at a 14.85% discount to its NAV and has not been awarded a Morningstar Rating. Launched in March 2013, the trust’s share price has grown 3.10% over the past year, against a NAV which has grown 0.76%. Over a five-year annualized period, the trust’s share price has grown 3.27% while the NAV has grown 7.95% on average.

Artemis UK Future Leaders AFL

• Morningstar Category
  : EAA CE UK Small-Cap Equity
• Ongoing Charge: 1.00%
• Premium/Discount: -10.55%

In July, the £127.5 million Artemis UK Future Leaders trust rose 10.10% on a share price basis and was trading at a 10.55% discount to its NAV at the end of the month. Over the past year, the trust’s share price has gained 5.21% against a NAV growth of 0.30%. Over a five-year annualized period, the trust’s share price has fallen 5.34% while the NAV has fallen 5.41% on average. The Artemis trust has a Morningstar Rating of 1 stars.

SDCL Efficiency Income Trust SEIT

• Morningstar Category
  : EAA CE Infrastructure Direct
• Ongoing Charge: 1.05%
• Premium/Discount: -48.07%

In July, the £809.9 million SDCL Efficiency Income Trust rose 9.15% on a share price basis and was trading at a 48.07% discount to its NAV at the end of the month. Over the past year, the trust’s share price has fallen 24.68% against a NAV decline of 11.50%. Over a five-year annualized period, the trust’s share price has fallen 12.65% while the NAV has stayed flat on average. The SDCL trust is being wound up after a shareholder vote in July.

Fidelity Special Values FSV

• Morningstar Category
  : EAA CE UK Flex-Cap Equity
• Ongoing Charge: 0.68%
• Premium/Discount: 1.86%

In July, the £1.5 billion Fidelity Special Values trust rose 8.93% on a share price basis and was trading at a 1.86% premium to its NAV at the end of the month. Over the past year, the trust’s share price has gained 25.25% against a NAV growth of 19.89%. Over a five-year annualized period, the trust’s share price has grown 13.37% while the NAV has grown 13.36% on average. The Fidelity International trust has a Morningstar Rating of 4 stars.

Oakley Capital Investments OCI

• Morningstar Category
  : EAA CE Private Equity
• Ongoing Charge: 3.13%
• Premium/Discount: -33.50%

In July, the £1.3 billion Oakley Capital Investments rose 8.79% on a share price basis and was trading at a 33.50% discount to its NAV at the end of the month. Over the past year, the trust’s share price has fallen 5.80% against a NAV growth of 5.71%. Over a five-year annualized period, the trust’s share price has grown 8.87% while the NAV has grown 14.46% on average. The Oakley Capital trust has not been awarded a Morningstar Rating.

Investment Company INV

• Morningstar Category
  : EAA CE Other
• Ongoing Charge: 2.00%
• Premium/Discount: -4.82%

In July, the £3.3 million Investment Company rose 8.70% on a share price basis and was trading at a 4.82% discount to its NAV at the end of the month. Over the past year, the trust’s share price has gained 17.19% against a NAV decline of 0.94%. Over a five-year annualized period, the trust’s share price has grown 3.95% while the NAV has grown 2.61% on average. The Dowgate Wealth-managed trust has not been awarded a Morningstar Rating.

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.