After a challenging year for funds, analysts at Kepler have spotlighted a cohort of investment trust demonstrating resilience and strong performance.
Kepler Trust Intelligence's annual ratings evaluated trusts across growth, income & growth, and alternative income categories, with ratings based on a proprietary quantitative system.
Among growth funds, the list showed strong performance from a number of income-focused funds, including Dunedin Income Growth, Murray Income Trust plc (LSE:MUT) and and JPMorgan Global Emerging Markets Income, which have demonstrated impressive total returns.
Ashoka India Equity Investment Trust PLC (LSE:AIE) entered the rankings for the first time, almost at the top of the list due to its exceptional record and a good year for Indian stocks, which Kepler said further highlights the evolving dynamics within the trust space.
Growth trusts
- Pershing Square Holdings (LSE:PSH)
- Ashoka India Equity Investment
- BlackRock Greater Europe
- Canadian General Investments
- Fidelity European Trust
- Pacific Assets
- JPMorgan Emerging Markets
- Henderson EuroTrust
- Henderson European Focus Trust
- Invesco Select Global Equity Inc
- Pacific Horizon
- Dunedin Income Growth
- CQS Natural Resources G&I
- Schroder Asian Total Return
- Murray Income Trust
- BlackRock Frontiers
- BlackRock Energy and Resources
- JPMorgan Global Emerg Mkts Inc
- RIT Capital Partners (LSE:RCP)
- Merchants Trust
Thomas McMahon, investment trust research manager, noted, “The past year saw challenging macro conditions filter down into the investment trust space, but many funds in the sector have proved resilient.”
This resilience is pivotal in a year marked by economic uncertainties and shifting investor sentiments.
Furthermore, the emergence of trends such as the strong performance of equity income funds suggests a shifting landscape in the investment trust sector.
With low starting valuations indicating high yields and a higher interest rate environment, these funds are well-positioned to create favourable tailwinds in the coming years.
Among income & growth funds, a key theme highlighted by Kepler is the prevalence of small and mid-cap-focused funds.
Low valuations, particularly in the UK, have created interesting opportunities.
Income & Growth Rated Funds
- JPMorgan China Growth & Income
- Lindsell Train
- Montanaro UK Smaller Companies
- Utilico Emerging Markets
- JPMorgan Asia Growth & Income
- JPMorgan European Growth & Income
- Mercantile CC
- Japan Income & Growth
- Schroder UK Mid Cap
- Templeton Emerging Mkts
- Henderson Opportunities
- Fidelity China Special Sitiatuions
- BlackRock World Mining Trust
- TR Property Invesco Asia
- Schroder Income Growth
- Weiss Korea Opportunity
- Schroder Oriental Income
- Fidelity Special Values
Among alternative income rated funds, Kepler said the top ranks recognised those that have succeeded in maintaining or growing both their dividend and their NAV on a five-year basis.
The funds "demonstrated proof of concept in a relatively young asset class where many have not yet established a firm track record".
It awarded ratings to 14 alternatives funds in the year, up from 11 in 2023, with an energy storage fund – Gresham House Energy Storage Fund PLC (LSE:GRID) – appearing on the list for the first time, just topping Greencoat UK Wind PLC (LSE:UKW) in yield in the below table.
