The Best Performing Investment Trusts: Private Equity and Technology Lead the Way

The 10 best-performing investment trusts over the past decade include private equity, technology, global large-cap, and US large-cap vehicles. The top performer, 3i Group, saw an annualized return of 25% and cumulative growth of 865% over 10 years. Technology trusts like Allianz Technology Trust and Polar Capital Technology also performed well.

Private equity trusts dominated the list, with the Morningstar PitchBook Developed Markets Listed Private Equity Index achieving a 10-year annualized return of 15% in GBP terms. Technology trusts like Allianz Technology Trust and Polar Capital Technology outperformed the Morningstar Global Technology Index, with average annual growth rates of 23% and 21%, respectively.

3i Group, Allianz Technology Trust, and Polar Capital Technology were the top three performers over 10 years. 3i Group achieved impressive asset growth of 25.45% annually, beating the Morningstar PitchBook Developed Markets Listed Private Equity Index by 10.31%. Allianz Technology Trust and Polar Capital Technology also showed strong performance.

HgCapital Trust, Scottish Mortgage, Oakley Capital Investments, Seed Innovations, JPMorgan American, Manchester & London, and HarbourVest Global Private Equity rounded out the list of the 10 best-performing investment trusts over 10 years. Each trust demonstrated solid growth and beat relevant industry benchmarks.

Investment trusts are closed-end funds that provide exposure to illiquid assets such as unlisted companies and niche sectors. They can use borrowing to enhance returns and their shares trade on the London Stock Exchange. Trust performance can be measured by real-time pricing or net asset value, reflecting underlying asset value.

Calculating investment trust performance involves monitoring real-time share prices and net asset value (NAV). Trusts can trade at a discount or premium to NAV, indicating investor sentiment. For example, Polar Capital Technology showed strong performance in NAV terms, with a gain of 24.53% this quarter.

Figures in the article are sourced from Morningstar Direct. Net asset value and share price returns are key metrics for evaluating trust performance. Discounts or premiums to NAV can signal investor sentiment. Trusts without disclosed fund sizes, missing return figures, venture capital trusts, and real estate investment trusts were excluded from the analysis.

Read more at Morningstar: The Best Performing Investment Trusts Over the Past 10 Years