Each month, we check in on the returns of the largest UK-listed investment trusts.
In July, of the 10 largest trusts, those focused on private equity, flexible allocation, and UK property were among the strongest performers.
3i Group III was the best-performing investment trust in July, up 15.21% on a share price basis. Over the past 12 months, the trust has fallen 28.72%.
Here’s a closer look at the performance of each of the 10 largest investment trusts.
Performance of the Largest Investment Trusts
3i Group III
- : EAA CE Private EquityMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -5.54%
The £29.7 billion 3i Group rose 15.21% on a share price basis over the month. The 3i trust is trading at a 5.54% discount to its NAV and has not been awarded a Morningstar Rating. Launched in April 1945, the trust’s share price has fallen 28.72% over the past year, against a NAV which has grown 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.
RIT Capital Partners RCP
- : EAA CE GBP Flexible AllocationMorningstar Category
- Ongoing Charge: 0.73%
- Premium/Discount: -17.70%
In July, the £3.9 billion RIT Capital Partners trust rose 12.01% on a share price basis and was trading at a 17.70% discount to its NAV at the end of the month. Over the past year, the trust’s share price has gained 34.37% against a NAV growth of 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. The RIT Capital trust has a Morningstar Rating of 4 stars.
Tritax Big Box BBOX
- : EAA CE Property - Direct UKMorningstar Category
- Ongoing Charge: 0.79%
- Premium/Discount: -7.91%
In July, the £4.9 billion Tritax Big Box trust rose 5.39% on a share price basis and was trading at a 7.91% discount to its NAV at the end of the month. Over the past year, the trust’s share price has gained 27.08% against a NAV growth of 1.56%. Over a five-year annualized period, the trust’s share price has grown 0.43% while the NAV has grown 2.60% on average. The Tritax trust has not been awarded a Morningstar Rating.
Pershing Square Holdings PSH
- : EAA CE US Large-Cap Growth EquityMorningstar Category
- Ongoing Charge: 2.30%
- Premium/Discount: -28.28%
The £9.4 billion Pershing Square Holdings trust rose 2.09% on a share price basis over the month. The Pershing Square trust is trading at a 28.28% discount to its NAV and has a Morningstar Rating of 2 stars. Launched in May 2017, the trust’s share price has fallen 9.17% over the past year, against a NAV which has fallen 10.43%. Over a five-year annualized period, the trust’s share price has grown 9.93% while the NAV has grown 9.49% on average.
JPMorgan Global Growth & Income IT JGGI
- : EAA CE Global Large-Cap Blend EquityMorningstar Category
- Ongoing Charge: 0.39%
- Premium/Discount: -0.48%
In July, the £3.4 billion JPMorgan Global Growth & Income IT trust rose 0.66% on a share price basis and was trading at a 0.48% discount to its NAV at the end of the month. Over the past year, the trust’s share price has gained 9.85% against a NAV growth of 11.06%. Over a five-year annualized period, the trust’s share price has grown 10.81% while the NAV has grown 11.71% on average. The JPMorgan trust has a Morningstar Rating of 4 stars.
3i Infrastructure 3IN
- : EAA CE Infrastructure DirectMorningstar Category
- Ongoing Charge: 1.43%
- Premium/Discount: -3.51%
The £3.7 billion 3i Infrastructure trust rose 0.53% on a share price basis over the month. The 3i trust is trading at a 3.51% discount to its NAV and has not been awarded a Morningstar Rating. Launched in March 2007, the trust’s share price has grown 12.51% over the past year, against a NAV which has grown 8.45%. Over a five-year annualized period, the trust’s share price has grown 8.17% while the NAV has grown 12.41% on average.
Alliance Witan ALW
- : EAA CE Global Large-Cap Blend EquityMorningstar Category
- Ongoing Charge: 0.47%
- Premium/Discount: -3.87%
In July, the £5.3 billion Alliance Witan trust rose 0.07% on a share price basis and was trading at a 3.87% discount to its NAV at the end of the month. Over the past year, the trust’s share price has gained 7.44% against a NAV growth of 9.06%. Over a five-year annualized period, the trust’s share price has grown 8.46% while the NAV has grown 7.77% on average. The Willis Towers Watson trust has a Morningstar Rating of 3 stars.
F&C Investment Trust FCIT
- : EAA CE Global Large-Cap Blend EquityMorningstar Category
- Ongoing Charge: 0.45%
- Premium/Discount: -6.60%
The £6.8 billion F&C Investment Trust fell 5.26% on a share price basis over the month. The Columbia Threadneedle trust is trading at a 6.60% discount to its NAV and has a Morningstar Rating of 4 stars. Launched in March 1868, the trust’s share price has grown 13.95% over the past year, against a NAV which has grown 18.65%. Over a five-year annualized period, the trust’s share price has grown 10.89% while the NAV has grown 10.22% on average.
Scottish Mortgage Investment Trust SMT
- : EAA CE Global Large-Cap Growth EquityMorningstar Category
- Ongoing Charge: 0.33%
- Premium/Discount: -6.53%
In July, the £15.4 billion Scottish Mortgage Investment Trust fell 9.52% on a share price basis and was trading at a 6.53% discount to its NAV at the end of the month. Over the past year, the trust’s share price has gained 21.61% against a NAV growth of 20.63%. Over a five-year annualized period, the trust’s share price has grown 0.67% while the NAV has grown 1.27% on average. The Baillie Gifford trust has a Morningstar Rating of 4 stars.
Polar Capital Technology PCT
- : EAA CE Equity TechnologyMorningstar Category
- Ongoing Charge: 0.69%
- Premium/Discount: -8.74%
The £7.7 billion Polar Capital Technology trust fell 12.13% on a share price basis over the month. The Polar Capital trust is trading at a 8.74% discount to its NAV and has a Morningstar Rating of 5 stars. Launched in December 1996, the trust’s share price has grown 55.85% over the past year, against a NAV which has grown 53.67%. Over a five-year annualized period, the trust’s share price has grown 20.81% while the NAV has grown 20.96% 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.
