Each quarter, we check in on the returns of UK-listed investment trusts.
In the third quarter, trusts focused on property were among the weakest performers.
Residential Secure Income RESI was the worst-performing investment trust in the third quarter, down 84.18% on a share price basis. Over the past 12 months, the trust has fallen 84.14%.
Here’s a closer look at each of the 10 worst performers.
The Worst-Performing Investment Trusts
Residential Secure Income RESI
- : Property - Direct UKMorningstar Category
- Ongoing Charge: 1.40%
- Premium/Discount: -88.03%
The £111.3 million Residential Secure Income Trust fell 84.18% on a share price basis over the quarter. The trust, managed by Gresham House, is trading at a 88.03% discount to its NAV. Launched in July 2017, the trust’s share price has fallen 84.14% over the past year, against a NAV which has grown 2.39%. Over a five-year annualized period, the trust’s share price has fallen 34.94% while the NAV has fallen 5.76% on average.
Alternative Liquidity Fund ALF
- : Alternative OtherMorningstar Category
- Ongoing Charge: 7.29%
- Premium/Discount: -67.87%
In the third quarter, the £2.7 million Alternative Liquidity Fund Trust fell 80.97% on a share price basis and was trading at a 67.87% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has fallen 67.57% against a NAV decline of 11.77%. Over a five-year annualized period, the trust’s share price has fallen 3.48% while the NAV has fallen 10.05% on average. The trust is managed by Hindsight Solutions.
abrdn European Logistics Income ASLI
- : Property - Direct EuropeMorningstar Category
- Ongoing Charge: 1.80%
- Premium/Discount: -48.10%
In the third quarter, the £84.5 million abrdn European Logistics Income Trust fell 32.97% on a share price basis and was trading at a 48.10% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has fallen 27.84% against a NAV decline of 9.30%. Over a five-year annualized period, the trust’s share price has fallen 13.33% while the NAV has fallen 6.97% on average. The trust is managed by abrdn.
Seneca Growth Capital VCT B SVCT
- : Venture CapitalMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -7.12%
In the third quarter, the £8.8 million Seneca Growth Capital VCT B Trust fell 22.50% on a share price basis and was trading at a 7.12% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has fallen 23.34% against a NAV decline of 14.69%. Over a five-year annualized period, the trust’s share price has fallen 15.88% while the NAV has fallen 16.09% on average. The trust is managed by Seneca Partners.
Sure Ventures SURE
- : Venture CapitalMorningstar Category
- Ongoing Charge: 3.80%
- Premium/Discount: -76.68%
The £9.4 million Sure Ventures Trust fell 21.43% on a share price basis over the quarter. The trust, managed by Shard Capital, is trading at a 76.68% discount to its NAV. Launched in January 2018, the trust’s share price has fallen 66.67% over the past year, against a NAV which has fallen 30.64%. Over a five-year annualized period, the trust’s share price has fallen 23.21% while the NAV has grown 1.92% on average.
Intuitive Investments Group IIG
- : Equity HealthcareMorningstar Category
- Ongoing Charge: None
- Premium/Discount: 16.63%
The £419.4 million Intuitive Investments Group Trust fell 20.66% on a share price basis over the quarter. The trust, managed by Intuitive Investments Group, is trading at a 16.63% premium to its NAV. Launched in December 2020, the trust’s share price has grown 129.38% over the past year, against a NAV which has grown 38.06%. Over a five-year annualized period, the trust’s share price has grown 5.86% while the NAV has grown 0.60% on average.
Crystal Amber CRS
- : UK Small-Cap EquityMorningstar Category
- Ongoing Charge: 1.26%
- Premium/Discount: -54.56%
In the third quarter, the £100.9 million Crystal Amber Trust fell 20.41% on a share price basis and was trading at a 54.56% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has fallen 47.30% against a NAV decline of 4.20%. Over a five-year annualized period, the trust’s share price has grown 4.79% while the NAV has grown 11.27% on average. The trust is managed by Crystal Amber.
Phoenix Digital Assets PNIX
- : Digital AssetsMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -55.15%
The £30.4 million Phoenix Digital Assets Trust fell 18.18% on a share price basis over the quarter. The trust, managed by NFT Investments, is trading at a 55.15% discount to its NAV. Launched in April 2021, the trust’s share price has fallen 67.47% over the past year, against a NAV which has stayed flat. The trust does not yet have a five-year track record.
Phoenix Spree Deutschland PSDL
- : Property - Direct EuropeMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -50.17%
The £245.6 million Phoenix Spree Deutschland Trust fell 17.56% on a share price basis over the quarter. The trust, managed by QSix Residential, is trading at a 50.17% discount to its NAV. Launched in June 2015, the trust’s share price has fallen 15.55% over the past year, against a NAV which has fallen 3.02%. Over a five-year annualized period, the trust’s share price has fallen 18.08% while the NAV has fallen 8.71% on average.
Macau Property Opportunities MPO
- : Property - Direct OtherMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -76.52%
In the third quarter, the £14.2 million Macau Property Opportunities Trust fell 16.00% on a share price basis and was trading at a 76.52% discount to its NAV at the end of the quarter. Over the past year, the trust’s share price has fallen 71.34% against a NAV decline of 41.03%. Over a five-year annualized period, the trust’s share price has fallen 38.07% while the NAV has fallen 31.45% on average. The trust is managed by Sniper Capital.
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.
