3i Group has emerged as the biggest and best-performing investment trust over the past decade. With a focused strategy on private equity and infrastructure investments, the trust has seen remarkable gains, particularly from its largest position in Dutch discount retailer Action. The trust’s share price has skyrocketed, outperforming major benchmarks.

3i Group’s investment strategy is heavily concentrated on private equity and infrastructure, with over 80% of its assets in private equity. The trust’s top five holdings include Action, Royal Sanders, and 3i Infrastructure. Action, a European retail giant, accounts for over half of 3i’s portfolio and has been a key driver of growth.

3i’s performance has been exceptional, outperforming public markets over a 10-year period. The trust’s share price has seen significant growth, quadrupling in recent years. Compared to other investment trusts and benchmarks, 3i has delivered impressive returns. Its net asset value performance also leads within its category and the wider investment trust landscape.

The success of Action, which makes up more than half of 3i’s portfolio, has been a significant contributor to 3i’s growth. Recently, 3i increased its stake in Action, reflecting its continuous support for the retailer. The trust has also made strategic exits and entries in its private equity holdings to drive future growth.

Analysts are bullish on 3i, with 83% rating it as a buy. The average target price is above the trust’s current share price, with analysts highlighting the strength of 3i’s investments, particularly in Action. However, risks remain, including sensitivity to the economic environment and exposure to non-sterling currencies in the portfolio.

Read more at Morningstar: 3i’s Share Price Is Up 1,180%. Can This Private Equity Trust Keep Beating Rivals?