Morningstar

The Worst-Performing Investment Trusts in February 2026

Private equity trusts dominate the list of worst performers last month.

UK, London, elevated view over city financial district skyline looking west illuminated at dusk
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Key Takeaways

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

Private equity trusts account for six of the 10 worst performers for the month. Chrysalis Investments CHRY, HgCapital Trust HGT and CT Private Equity CTPE all fell over 10% in February. In addition, healthcare trust Bellevue Healthcare BBH fell 7.57% in February.

The worst-performing investment trust with a Morningstar Medalist Rating was the UK’s second-biggest trust, Scottish Mortgage SMT. The trust has significant exposure to SpaceX, which Morningstar company PitchBook has recently estimated to be worth between USD 1.1 trillion and USD 1.7 trillion and could float in 2026. Despite a 15% exposure to the company, the trust’s shares were down 1.43% for the month.

The Worst-Performing Investment Trusts in February 2026

Chrysalis Investments CHRY

The £802 million Chrysalis Investments’ share price plunged by 12.86% in February, falling further than the 3.66% drop in net asset value (NAV), leaving shares at a 44.67% discount. The private equity trust’s assets are primarily invested in financial technology companies, with a 53% exposure to UK challenger bank Starling. So far this year, it has fallen 23.11% while the NAV remains unchanged. Chrysalis Investments shares have an annualized share price loss of 14.73% over five years, and a NAV loss of 1.76%.

HgCapital Trust HGT

The £2.55 billion HgCapital Trust trust’s share price fell 11.95% over the month while its NAV rose 2.17%. On Feb. 27, it traded at a 28.92% discount to its NAV. The trust invests in transatlantic software and services businesses. The share price has dropped 21.50% in 2026 so far, against a flat NAV. It has seen its share price increase 5.25% on a five-year annualized basis, while its net asset value has grown 14.46% on average.

CT Private Equity Trust CTPE

The £492 million CT Private Equity Trust tumbled 10.53% on a share price basis over the month. The Columbia Threadneedle trust, which invests in various buyout, venture capital and mezzanine funds, was trading at a 25.86% discount to its NAV at the end of February. Year to date, the share price has fallen 7.76%, against a NAV which has grown 1.02%. The five-year annualized share price return has been 18.7% with a NAV increase of 11.54%.

Chenavari Toro Income Fund TORO

Chenavari Toro Income Fund’s share price dropped 9.55% in February 2026 while its NAV grew 4%. At the end of the month, the £160 million credit and asset-backed security trust’s shares were trading below its NAV, at a 7.47% discount. Year to date, the share price has increased 9.84% against a NAV which has grown a narrower 0.34%. Over the longer term, shares in Chenavari Toro Income Fund share price and NAV have both performed well; in a five-year period, the share price has an annualized gain of 12.86% and a NAV increase of 5.50%.

JZ Capital Partners JZCP

In February, the £176 million JZ Capital Partners fell 7.61% on a share price basis and was trading at a 41.90% discount to its unchanged NAV at the end of the month. The trust invests in microcap companies in the US and Europe, as well as US real estate. Year to date, the trust’s share price has dropped by 10.05% against a NAV reduction of 2.04%. Over a five-year annualized period, the trust’s share price has increased by 16.86% while the NAV has fallen 0.83% 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.

For example, one of the worst performers, Caledonia Investments CLDN, rose 1.46% over the month in NAV terms. In share price terms, however, the trust fell 7.14%, a loss rather than a gain for the theoretical investor who bought shares on Feb. 1 and held them until Feb. 27.

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 month, 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.
  • We have also excluded trusts without a disclosed fund size, trusts below £20 million, venture capital trusts (VCTs), direct real estate and real estate investment trusts (REITs).

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.

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