Our Buy List
This is our personal list of favourite investment trusts that are on our buy list.
It is important that you are aware that this is not and cannot be a recommendation for you to buy personally. We cannot comment on how suitable these recommendations might be for your personal circumstance.
Your capacity for loss together with your attitude to invest risk and investment time horizon are among considerations you need to make on your own or with your family or with an independent financial adviser.
Most importantly of all, all of our fund reviews are from the perspective of an investor because that is what are. An important caveat to this though is that we are long term investors and all our recommendations are from a long term perspective.
Reviewing investment funds is a lengthy process. Several days of research can go in to producing a report on a single fund or whole sector.
We are fortunate to be able to meet and interview many successful investment trust managers. However most of our analysis is concerned with studying balance sheets, Annual report and accounts, fundamental data such as the metrics charts you’ll find in all of our fund reviews and comparison to peers. Industry statistics, independent research and analysis of trends in society both locally and around the world.
We use Stockopedia for detailed analysis of the accounts of investment trusts going back several years.
Our buy list is and will continue to be a dynamic list of changing investment propositions, not usually changing because of macroeconomic issues, we won’t even pretend we can predict with any sort of certainty what’s going to happen there. The list will change in accordance to a careful evaluation process of each of the favoured funds on this page.
UK Income Funds
Edinburgh Investment Trust Managed by Neil Woodford of Invesco Perpetual
Schroder UK Growth trust - Shareholders were distraught when Richard Buxton left but they have gained a fantastic replacement in Julie Dean. She has ran an open ended Cazenove alternative for over a decade and her performance figures are stellar.
UK Growth & Income
Troy Income & Growth - Ran on an Absolute basis (meaning it seeks to make you money rather than bask in beating an index whilst still losing money). Troy was set up by the late Lord Weinstock and is conservatively ran. It typically has lower volitility than the overall market and good long term performance.
City of London Investment Trust - Has the longest record of consecutive dividend increases, this conservatively run fund has a record of beating the market whilst taking lower risk.
Finsbury Growth & Income – Nick Train’s value style of investing has taken this trust to the top of its sector leader board.
Lowland Investment Trust- Managed by James Henderson. With a portfolio of equities somewhat different to similar investment trusts, Lowland can help diversify investors risk as well as being a very good long term performer.
Diverse Income Trust – Gervais Williams has a good long term track record managing money. Holders of other trusts in this sector might appreciate the varied collection of stocks he holds, many in the small and mid cap sphere & which are complementary to other trusts.
UK Smaller Companies
Aberforth Smaller Companies - Unlike some of its competitors, a true smaller companies fund that sticks to its knitting even when the market isn’t feeling the love for smaller companies. Periods of under-performance will always occur as a result but its managers are skilled in finding cheap smaller companies that will at some point outperform.
International Income & Global Equities
Murray International Investment Trust
Managed by Bruce Stout from Aberdeen Asset Management
British Empire Securities Trust - Manager John Pennink runs this large Value style trust in a Contrarian fashion. It works!His trust to a large extent invests in vehicles controlled by wealthy families such as as the b Jardine Matheson & the Wallenberg’s of Sweden.
RIT Capital Partners - Formed by the Rothschild family and with links to the wealthy Rockefeller family, RIT’s conservatively ran portfolio has great appeal to long term investors.
Mid Wynd Investment Trust- Small in assets but big in performance, Mid Wynd is a diversified international investment trust with a good long term track record fromlong term Baillie Gifford manager Michael MacPhee.
Global Growth funds
The Scottish Mortgage Investment Trust
Managed by James Anderson of Baillie Gifford
Personal Assets – Conservatively managed with a focus on capital preservation, and with a concentrated portfolio of investments.
Scottish Investment Trust - Cautious self managed trust with a 29 year record of increasing dividends by an average of 7% per year.
Henderson Value Trust - A Global growth trust like no other here. For the adventurous investor this multi-asset hedge fund/Private equity fund-of-funds trust holds appeal.
Edinburgh Worldwide Investment Trust – With an experienced manager with a great performance record there is a lot to endear this too often forgotton trust to investors.
Asia & Emerging Markets
Scottish Oriental Smaller Companies Trust
Managed by Ms Susie Rippingall from First State Investments
Jupiter European Opportunities Investment Trust
Managed by Alexander Darwall from Jupiter Asset Management and the top performing fund in its sector. Another example of an investment trust that easily beats its open ended unit trust equivalent, even though it has the same manager.
Japan – Smaller Companies
Shin Nippon Investment Trust (Baillie Gifford).
Manager John MacDougall has a long track record of finding successful smaller Japanese companies exposed to Healthcare for Japan’s ageing population and technology and export led stocks.
Baillie Gifford Japan Trust – Even in years when investment returns have been poor in Japan this trust has delivered positive returns. With exposure to larger companies than stable-mate Shin Nippon this should be a core holding for investors seeking exposure to Japan.
JP Morgan Russian Securities – Investing in Russia has undoubted risks. For more adventurous investors with an appetite for this much risk, this trust has probably the most experienced Russian investment experience around.
Hedge Fund & Absolute Return
BH Macro Invests exclusively in to the Brevan Howard Master Hedge fund
Ruffer Investment Company Managed by the trio Jonathan Ruffer, Hamish Baillie and Steve Russell up of UK
3i Infrastructure Energy and rail infrastructure dominate here but it also as a holdings in 3i India and a group of PFI projects operating schools etc.
HgCapital Trust - provides exposure to a diversified portfolio of private equity investments primarily in the UK and Continental Europe.
Electra – One of the oldest names in private equity and one the best we think too.
DBAG (Deutsche Beteiligungs) – Has been Investing in the heart of German industry for over four decades. With solid long term performance and shareholder friendly policies, this is a top pick in the directly investing sector.
Technology, Media & Telecoms (TMT)
Herald Investment Trust - Small & medium sized TMT trust with a large overweight to the UK. Manager Katie Potts has a long and successful track record.
Polar Capital Technology Trust - Ben Rogoff has been managing technology funds two decades. With a focus on medium to large cap stocks, many based in the US, Rogoff and his team have a strong track record in the technology sector.
Healthcare & Biotechnology
Fixed Interest & Debt
Henderson Diversified Income - A strategic Bond and loan fund able to allocate its assets to whichever part of the market the managers find value. Managed by Henderson’s successful fixed interest team.
GLI Finance (formerly Greenwich Loan Income) – Owns lending businesses in the USA & UK that issue Senior secure loans to the small & medium corporate market. An unusual fund with a good management team & progressive dividend policy.
TR Property Investment Trust - Diversified Pan-European investor in both property shares and to a much lesser extent direct property. With performance its competitors envy, it’s easily our pick of the sector.
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