UK investment trusts double initial capital

The top five UK investment trusts have more than doubled an initial £1,000 investment over the past three years, independent Money Management research shows.

The table below shows performance for the top five UK investment trusts based on a three-year performance in the UK Growth, UK Growth & Income, UK High Income and UK Smaller Companies sectors as at 8 July 2013.

Despite the impressive returns of the top performers, the difference between the top and bottom trusts is stark. The worst over the same period was the Henderson Opps 2013 subs trust (issued on 23 January 2007 and expiring on 15 February 2014) which returned just £416 over three years. Damille Investments, a Guernsey domiciled closed-ended fund, returned £523.

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At the other end of the scale, the Perpetual Income and Growth 2013 Subs trust, managed by Invesco Asset Management, returned a staggering £5,693 over the three-year period to 8 July 2013. It should be noted subscription shares – such as the Henderson and Invesco trusts – carry a much higher risk than ordinary shares and increased volatility.

Acorn Income fund returned £2,688 over three years based on an initial investment with Standard Life’s UK Smaller Companies trust following at £2,277.

In this month’s cover feature, Money Management spoke to managers and analysts about whether the UK has returned to full strength after nearly five years of austerity. The research shows that based on an initial £1,000 investment, the top 10 funds from fixed income, equity, mixed assets and investment trusts all returned above average.

Top and bottom performing UK funds ranked over three years
Top 5 performersSector1 yr3 yrs
Perp Inc & Growth 2013 SubsUK Growth & Income3,5035,693
Acorn Income Fund OrdUK High Income1,7302,688
Standard Life UK Smaller Co. OrdUK Smaller Companies1,4412,277
Henderson Smaller Companies OrdUK Smaller Companies1,5442,258
Lowland OrdUK Growth & Income1,4252,214
Bottom 5 performers
Manchester & London OrdUK Growth1,0441,025
SVM UK Emerging OrdUK Smaller Companies900900
Aurora OrdUK Growth967864
Damille Investments OrdUK Smaller Companies474523
Henderson Opps 2014 SubsUK Growth1,600416
Figures as at 8 July 2013, based on £1,000 initial investment. Source: Morningstar