Top 10 investment trusts of 2018
3rd January 2019 09:18
by Tom Bailey from interactive investor
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Due to market volatility, the best-performing investment trusts of 2018 were not the big-name equity trusts that topped the table last year, writes Tom Bailey.
It has been a tough year for equity markets as a whole. After a solid start to the year, US equities have been under heavy selling pressure since November. At the same time, Chinese shares were hit hard by slowed domestic growth and trade war fears, while emerging markets came under pressure from a strengthening US dollar.
Meanwhile, both European and Japanese shares continued to disappoint, while Brexit and the prospect of a Corbyn-led Labour government has driven investors out of UK markets.
It should be no surprise then that the best-performing investment trusts of 2018 were not the big-name equity trusts that topped the table last year. Many of those trusts will in all likelihood end the year in the red. Instead, the table of the top performers for 2018 had more of a niche or alternative asset focus.
For example, occupying three spaces in the top trusts are the Doric Nimrod Air trusts. Each trust owns just a single aircraft, which it then leases in order to provide returns for shareholders. The best-performing Doric Nimrod Air trust provided investors with returns of 20.7%.
Another niche trust in the list was EJF Investments, returning 22.6%. The trust looks to invest in assets set to benefit from regulatory and structural change in the financial services sector.
The healthcare theme also seemed to pay off in 2018. Second on the list was Syncona, a trust with over one and half billion worth of assets, which provided investors with a return of 32.1%.
At the same time, BB Healthcare has found itself in the list, giving investors a return of 17.2%. The trust invests in companies it sees as benefitting from certain healthcare related themes, ignoring benchmarks and geography.
Topping the list was Lindsell Train Investment trust. The trust was able to provide investors with a whopping 44.8%. However, those returns should be understood in context.
Source: interactive investor
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.