Each month, we check in on the returns of UK-listed investment trusts.
In July, trusts focused on UK property, alternatives, and venture capital were among the weakest performers.
Residential Secure Income RESI was the worst-performing investment trust in July, down 50.54% on a share price basis. Over the past 12 months, the trust has fallen 49.87%. The property-focused investment trust is being wound down and its retirement housing portfolio sold off. Investors in the trust will receive a mixture of cash and shares in Living REIT LIVE
Here’s a closer look at each of the 10 worst performers.
The Worst-Performing Investment Trusts
Residential Secure Income RESI
- : EAA CE Property - Direct UKMorningstar Category
- Ongoing Charge: 1.40%
- Premium/Discount: -53.80%
In July, the £111.3 million Residential Secure Income trust fell 50.54% on a share price basis and was trading at a 53.80% discount to its NAV at the end of the month. Over the past year, the trust’s share price has fallen 49.87% against a NAV decline of 1.81%. Over a five-year annualized period, the trust’s share price has fallen 18.24% while the NAV has fallen 5.97% on average. The Gresham House-managed trust has not been awarded a Morningstar Rating.
Alternative Liquidity Fund ALF
- : EAA CE Alternative OtherMorningstar Category
- Ongoing Charge: 7.29%
- Premium/Discount: -21.25%
The £3 million Alternative Liquidity Fund fell 49.51% on a share price basis over the month. The Hindsight Solutions trust is trading at a 21.25% discount to its NAV and has not been awarded a Morningstar Rating. Launched in September 2015, the trust’s share price has fallen 12.34% over the past year, against a NAV which has fallen 54.34%. Over a five-year annualized period, the trust’s share price has grown 18.58% while the NAV has fallen 11.16% on average.
Gresham House Renewable Energy VCT 2 GV2O
- : EAA CE Venture CapitalMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -75.98%
The £6 million Gresham House Renewable Energy VCT 2 fell 35.71% on a share price basis over the month. The Gresham House trust is trading at a 75.98% discount to its NAV and has not been awarded a Morningstar Rating. Launched in January 2011, the trust’s share price has fallen 35.71% over the past year, against a NAV which has grown 11.76%. Over a five-year annualized period, the trust’s share price has fallen 18.87% while the NAV has fallen 9.28% on average.
Gresham House Renewable Energy VCT 1 GV1O
- : EAA CE Venture CapitalMorningstar Category
- Ongoing Charge: 4.68%
- Premium/Discount: -76.39%
The £5.9 million Gresham House Renewable Energy VCT 1 fell 31.82% on a share price basis over the month. The Gresham House trust is trading at a 76.39% discount to its NAV and has not been awarded a Morningstar Rating. Launched in January 2011, the trust’s share price has fallen 31.82% over the past year, against a NAV which has grown 10.71%. Over a five-year annualized period, the trust’s share price has fallen 19.12% while the NAV has fallen 9.52% on average.
Seneca Growth Capital VCT HYG
- : EAA CE Venture CapitalMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -11.39%
The £641.1 thousand Seneca Growth Capital VCT fell 22.22% on a share price basis over the month. The Seneca Partners trust is trading at a 11.39% discount to its NAV and has not been awarded a Morningstar Rating. Launched in April 2002, the trust’s share price has grown 86.67% over the past year, against a NAV which has fallen 3.40%. Over a five-year annualized period, the trust’s share price has fallen 8.39% while the NAV has fallen 15.78% on average.
Edinburgh Worldwide EWI
- : EAA CE Global Small/Mid-Cap EquityMorningstar Category
- Ongoing Charge: 0.85%
- Premium/Discount: -7.59%
The £913.3 million Edinburgh Worldwide trust fell 19.97% on a share price basis over the month. The Baillie Gifford-managed trust is trading at a 7.59% discount to its NAV and has a Morningstar Rating of 3 stars. Launched in July 1998, the trust’s share price has grown 21.22% over the past year, against a NAV which has grown 23.19%. Over a five-year annualized period, the trust’s share price has fallen 6.62% while the NAV has fallen 5.14% on average.
Seraphim Space Investment Trust SSIT
- : EAA CE Private EquityMorningstar Category
- Ongoing Charge: 1.77%
- Premium/Discount: -3.17%
The £421.3 million Seraphim Space Investment Trust fell 18.64% on a share price basis over the month. The Seraphim Space trust is trading at a 3.17% discount to its NAV and has not been awarded a Morningstar Rating. Launched in July 2021, the trust’s share price has grown 77.67% over the past year, against a NAV which has grown 49.87%. Over a five-year annualized period, the trust’s share price has grown 7.69% while the NAV has grown 12.40% on average.
Gabelli Merchant Partners GMP
- : EAA CE Alternative OtherMorningstar Category
- Ongoing Charge: 2.00%
- Premium/Discount: -34.35%
The £57.3 million Gabelli Merchant Partners fell 16.28% on a share price basis over the month. The Gabelli trust is trading at a 34.35% discount to its NAV and has not been awarded a Morningstar Rating. Launched in July 2017, the trust’s share price has fallen 18.37% over the past year, against a NAV which has grown 1.30%. Over a five-year annualized period, the trust’s share price has grown 7.62% while the NAV has grown 5.56% on average.
Manchester & London MNL
- : EAA CE Equity TechnologyMorningstar Category
- Ongoing Charge: 0.86%
- Premium/Discount: -11.28%
The £424.3 million Manchester & London trust fell 16.12% on a share price basis over the month. The M&L Capital Management trust is trading at a 11.28% discount to its NAV and has a Morningstar Rating of 4 stars. Launched in December 1997, the trust’s share price has grown 6.62% over the past year, against a NAV which has grown 7.59%. Over a five-year annualized period, the trust’s share price has grown 15.01% while the NAV has grown 14.78% on average.
Seraphim Space Investment Trust SSIC
- : EAA CE Private EquityMorningstar Category
- Ongoing Charge: None
- Premium/Discount: -26.02%
The £133.8 million Seraphim Space Investment Trust fell 15.00% on a share price basis over the month. The Seraphim Space trust is trading at a 26.02% discount to its NAV.
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.
