From Morningstar:

In 2023, the best performing closed-end fund under Morningstar coverage was JP Morgan American (JAM), with a near 25% share price gain. The worst performer was JPMorgan China Growth & Income (JCGI), which fell just over 37% in 2023 in share price terms.

Japan-focused trusts performed poorly in 2023, despite strong performance from the Nikkei 225 and Topix index, indicating a potential shift in market dynamics. However, managers’ deviation from the benchmark, active management, and currency factors play a significant role in performance.

China, as an emerging market, performed poorly in 2023, with JPMorgan Emerging Markets (JMG) falling just over 4%. The focus is now on the potential for a revival in China in 2024, with signs of a thaw in relations between the US and China.

Investment trusts, also known as closed-end funds, trade on the London Stock Exchange and can provide niche exposure to sectors that open-ended funds might not reach, such as airline leasing, music royalties, and renewable energy storage. Investment trusts trade at a discount or premium to their net asset values and can use gearing to enhance returns.

The consolidation of smaller trusts was seen in 2023, indicating a trend towards more consolidation in 2024. For example, abrdn New Dawn was wound up and taken over by the Asia Dragon Trust, signaling potential for more consolidation in the investment trust market.



Read more: The Best and Worst Performing Investment Trusts of 2023