Each quarter, we check in on the returns of the largest UK-listed investment trusts.
In the third quarter, of the 10 largest trusts, those focused on GBP flexible allocation, global large-cap growth equity, and private equity were among the strongest performers.
RIT Capital Partners RCP was the best-performing investment trust in the third quarter, up 10.92% on a share price basis. Over the past 12 months, the trust has gained 27.19%.
Here’s a closer look at the performance of each of the 10 largest investment trusts.
Performance of the Largest Investment Trusts
RIT Capital Partners RCP
- : GBP Flexible AllocationMorningstar Category
- Ongoing Charge: 0.73%
- Premium/Discount: -22.46%
In the third quarter, the £4 billion RIT Capital Partners Trust rose 10.92% on a share price basis and was trading at a 22.46% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has gained 27.19% against a NAV growth of 14.66%. Over a five-year annualized period, the trust’s share price has grown 1.72% while the NAV has grown 4.74% on average.
Scottish Mortgage Investment Trust SMT
- : Global Large-Cap Growth EquityMorningstar Category
- Ongoing Charge: 0.33%
- Premium/Discount: -6.56%
- Morningstar Medalist Rating: Gold
In the third quarter, the £17.7 billion Scottish Mortgage Investment Trust rose 8.16% on a share price basis and was trading at a 6.56% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has gained 40.33% against a NAV growth of 36.97%. Over a five-year annualized period, the trust’s share price has grown 2.64% while the NAV has grown 4.56% on average. The trust is managed by Baillie Gifford and has a Morningstar Medalist Rating of Gold.
3i Group III
- : Private EquityMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -16.18%
In the third quarter, the £29.4 billion 3i Group Trust rose 5.55% on a share price basis and was trading at a 16.18% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has fallen 33.71% against a NAV growth of 10.75%. Over a five-year annualized period, the trust’s share price has grown 18.83% while the NAV has grown 25.75% on average. The trust is managed by 3i and has not been awarded a Morningstar Medalist Rating.
3i Infrastructure 3IN
- : Infrastructure DirectMorningstar Category
- Ongoing Charge: 1.43%
- Premium/Discount: -2.38%
The £3.7 billion 3i Infrastructure Trust rose 4.37% on a share price basis over the quarter. The trust, managed by 3i, is trading at a 2.38% discount to its NAV and has not been awarded a Morningstar Medalist Rating. Launched in March 2007, the trust’s share price has grown 13.25% over the past year, against a NAV which has grown 2.70%. Over a five-year annualized period, the trust’s share price has grown 9.13% while the NAV has grown 10.56% on average.
Alliance Witan ALW
- : Global Large-Cap Blend EquityMorningstar Category
- Ongoing Charge: 0.47%
- Premium/Discount: -5.66%
The £5.3 billion Alliance Witan Trust rose 3.23% on a share price basis over the quarter. The trust, managed by Willis Towers Watson, is trading at a 5.66% discount to its NAV and has not been awarded a Morningstar Medalist Rating. Launched in April 1888, the trust’s share price has grown 12.13% over the past year, against a NAV which has grown 12.88%. Over a five-year annualized period, the trust’s share price has grown 8.84% while the NAV has grown 8.34% on average.
JPMorgan Global Growth & Income IT JGGI
- : Global Large-Cap Blend EquityMorningstar Category
- Ongoing Charge: 0.39%
- Premium/Discount: -3.76%
- Morningstar Medalist Rating: Gold
In the third quarter, the £3.4 billion JPMorgan Global Growth & Income IT Trust rose 2.09% on a share price basis and was trading at a 3.76% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has gained 11.06% against a NAV growth of 11.84%. Over a five-year annualized period, the trust’s share price has grown 10.72% while the NAV has grown 11.72% on average. The trust is managed by JPMorgan and has a Morningstar Medalist Rating of Gold.
F&C Investment Trust FCIT
- : Global Large-Cap Blend EquityMorningstar Category
- Ongoing Charge: 0.45%
- Premium/Discount: -6.14%
- Morningstar Medalist Rating: Silver
In the third quarter, the £6.8 billion F&C Investment Trust fell 0.91% on a share price basis and was trading at a 6.14% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has gained 16.70% against a NAV growth of 17.65%. Over a five-year annualized period, the trust’s share price has grown 11.65% while the NAV has grown 10.59% on average. The trust is managed by Columbia Threadneedle and has a Morningstar Medalist Rating of Silver.
Pershing Square Holdings PSH
- : US Large-Cap Growth EquityMorningstar Category
- Ongoing Charge: 2.30%
- Premium/Discount: -36.24%
The £9.9 billion Pershing Square Holdings Trust fell 1.54% on a share price basis over the quarter. The trust, managed by Pershing Square, is trading at a 36.24% discount to its NAV and has not been awarded a Morningstar Medalist Rating. Launched in May 2017, the trust’s share price has fallen 19.67% over the past year, against a NAV which has fallen 10.25%. Over a five-year annualized period, the trust’s share price has grown 8.03% while the NAV has grown 9.84% on average.
Polar Capital Technology PCT
- : Equity TechnologyMorningstar Category
- Ongoing Charge: 0.69%
- Premium/Discount: -10.49%
- Morningstar Medalist Rating: Gold
In the third quarter, the £8.6 billion Polar Capital Technology Trust fell 1.96% on a share price basis and was trading at a 10.49% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has gained 59.77% against a NAV growth of 59.51%. Over a five-year annualized period, the trust’s share price has grown 23.65% while the NAV has grown 23.55% on average. The trust is managed by Polar Capital and has a Morningstar Medalist Rating of Gold.
Tritax Big Box BBOX
- : Property - Direct UKMorningstar Category
- Ongoing Charge: 0.79%
- Premium/Discount: -23.37%
In the third quarter, the £5.4 billion Tritax Big Box Trust fell 8.42% on a share price basis and was trading at a 23.37% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has gained 6.50% against a NAV growth of 3.18%. Over a five-year annualized period, the trust’s share price has fallen 2.67% while the NAV has grown 3.10% on average. The trust is managed by Tritax and has not been awarded a Morningstar Medalist 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.
