The 34 trusts over 80 years old but still going strong

Almost 80 years since the outbreak of World War 2, these investment trusts have proven staying power.

The beginning of September marks 80 years since the invasion of Poland by Adolf Hitler's Germany - the start of the Second World War. 

An atomic bomb, Cold War, oil crises and a plethora of economic booms and busts later, the wider world has changed beyond all recognition since 1939. 

But investors can find one familiar landmark today: investment trusts.

There are 34 investment trusts in existence at the outbreak that remain today – more than half of which were founded in the previous century.

Some investment trusts helped the war effort by buying war bonds to fund military operations and other war related expenditure. They also played a role in financing the reconstruction of Britain in the aftermath of war.

The number of investment trusts available to retail investors has since ballooned to nearly four hundred trading in the UK, offering exposure to all regions of the world. The 34 enduring investment trusts are worth a total of £44 billion and account for over a fifth (23%) of the more than £196 billion of assets in the investment trust sector.

Lee Wild, Head of Equity Strategy, interactive investor, said: "The great post-war boom began shortly after the end of hostilities in 1945. Plenty of cycles have ended in corrections since, and major events like the Korean war, the oil crisis, Vietnam, 1987's Black Monday, the dotcom crash and Global Financial Crisis have disrupted financial markets. 

"But dramatic market corrections often present investors with an irresistible opportunity to buy good companies at cheap prices. Zoom out and many become just a blip on the long-term charts. There have been prolonged periods where markets have struggled, especially in the US from the late-1960s to the early-80s, but stock markets have rebounded following every crisis since World War II. Few alive today will have started investing in 1939, but the patience of most buy and hold investors since will have been rewarded with significant income and capital growth."

Myron Jobson, Personal Finance Campaigner, interactive investor, said: "These 34 investment trusts have to date demonstrated a robustness to not only withstand but evolve with changes in society. It's a reminder that before your let you head get turned by new launches, remember that one year's investment fashion fad can be next year's tank top.

"Indeed this long history is particularly inspiring if we turn to the open ended sector. Analysis from Vanguard this month suggests that over 10 years of analysis of active funds for sale in the UK from the first trading day of 2009, 467 UK equity funds had dwindled to 232 by the end of 2018. In other words, you arguably only had around a 50% chance of picking a fund that might stay the course.

"Of course, investors should scour the whole universe and the investment trust sector has also seen new launches come and go.  But it is a testament to the investment trust sector that these 34 trusts are still around 80 years on since the beginning of the war.

"At a time where US-China trade tensions, slowdowns in major economies and the ongoing uncertainty over Brexit have spurred recent market volatility, the experiences of the 34 'surviving' investment trusts is a timely reminder that a considered and well-diversified portfolio can help withstand even the toughest market conditions."

Investment trusts around since the start of WW2

Source: Morningstar