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Highlights
- Investment trusts are the companies that pool the investment from their shareholders and invest in a diversified portfolio of assets such as shares, bonds, or other assets with an aim to generate long-term profit.
- Data provided by the Association of Investment Companies (AIC) showed that around a quarter of investment trust were in existence before Queen Elizabeth II’s accession to the throne some 70 years ago.
In recent years, investment trusts have gained popularity, but they have been around for long time. As per figures from the Association of Investment Companies (AIC), around a quarter of investment trust existed before Queen Elizabeth II’s accession to the throne some 70 years ago.
Investment trusts are the companies that pool the investment from their shareholders and invest in a diversified portfolio of assets such as shares of other companies, unquoted companies, bonds, or other assets with an aim to generate long-term profit. These trusts are publicly listed, and they offer investors a chance to diversify their investment across hundreds of companies.
The share price of the investment trusts depends on the market value of the assets in their portfolio and on the demand and supply of the trust’s shares.
According to AIC, the investment trust industry has survived various market turbulence, Great Depression, and world wars. In 2021, the industry raised around £14.8 billion in investment.
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Here are the five oldest investment trust that have survived various market turbulence and still stood strong.
- F&C Investment Trust (LON:FCIT)
Launch Date: 19 March 1868
F&C Investment Trust is the world’s oldest collective investment trust with an aim to generate long-term growth and income by investing primarily in internationally publicly traded companies, as well as unquoted securities and private equity, combined with the use of gearing. The trust invests across a wide range of sectors, such as technology, consumer services, financials, industrials, oil and gas, consumer goods, healthcare, basic material, utilities and telecommunication and it is managed by BMO Investment Business Limited.
As of 31 January 2022, the trust’s total assets stood at £5,546.4 million, its 10-year share price total return stood at 258.36%- and 30-year share price total return stood at 1,631.9%.
F&C Investment trust has given a return of 9.75% to its shareholders in the last one year and its year-to-date return stands at -4.35% as of 9 February 2022. Its shares were trading at GBX 885, up by 0.68%, at around 9:35 AM BST, with a market capitalization of £4,628.12 million on 9 February 2022.
- JPMorgan American Investment Trust Plc (LON: JAM)
Launch date: 18 June 1881
JPMorgan American Investment Trust Plc primarily invests in quoted companies and small companies with an aim to generate long-term returns from the US stock market by focusing on high-quality companies that are also reasonably priced. Its objective is to achieve capital growth from North American investments by outperforming its benchmark S&P 500 Index, with net dividends reinvested. Its investment manager is JPMorgan Funds Limited.
As of 31 January 2022, the trust’s total assets stood at £1,561.47 million, its 10-year share price total return stood at 363.31%- and 30-year share price total return stood at 2,581.32%.
JPMorgan American Investment Trust Plc has given a return of 24.24% to its shareholders in the last one year and its year-to-date return stands at -2.16% as of 9 February 2022. Its shares were trading at GBX 750, up by 0.94%, at around 9:35 AM BST, with a market capitalization of £1,440.10 million on 9 February 2022.
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- City of London Investment Trust Plc (LON: CTY)
Launch Date- 01 January 1891
City of London Investment Trust Plc invests in shares and debt securities of large and multinational companies, mainly in the UK, with an objective to long-term growth in income and capital and dividend income. The trust has appointed Janus Henderson Group Plc as its investment manager. It invests across a wide range of sectors that include telecommunication, energy, industrials, basic material, healthcare, utilities, consumer staples, real estate, consumer discretionary, financial and technology.
As of 31 January 2022, the trust’s total assets stood at £1,955.47 million, its 10-year share price total return stood at 119.2%- and 30-year share price total return stood at 1,142.2%.
City of London Investment Trust Plc has given a return of 15.29% to its shareholders in the last one year and its year-to-date return stands at 4.31% as of 9 February 2022. Its shares were trading at GBX 411, up by 1.23%, at around 9:35 AM BST, with a market capitalization of £1,812.99 million on 9 February 2022.
- Scottish Mortgage Investment Trust Plc (LON: SMT)
Launch Date- 17 March 1909
Scottish Mortgage Investment Trust Plc primarily invest in globally listed and private company securities that can offer above the average returns to enhance total return over the long-term. The trust has appointed Baillie Gifford & Co Limited as its Alternative investment fund manager. It invests across a wide range of geographies and sectors such as technology, basic material, industrials, real estate, energy, healthcare and financials.
As of 31 January 2022, the trust’s total assets stood at £17,775.6 million, its 10-year share price total return stood at 800.11%- and 30-year share price total return stood at 5,985.41%.
Scottish Mortgage Investment Trust Plc has given a return of -20.02% to its shareholders in the last one year and its year-to-date return stands at -18.10% as of 9 February 2022. Its shares were trading at GBX 1,094, up by 2%, at around 9:35 AM BST, with a market capitalization of £15,495.53 million on 9 February 2022.
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- Canadian General Investments Ltd (LON: CGI)
Launch Date- 15 January 1930
Canadian General Investments Ltd focuses its investment on medium to long-term capital growth and dividends by investing in publicly traded Canadian companies. Its objective is to deliver higher than average return to its shareholders through prudent security selection, appropriate income-generating instruments and timely recognition of capital gains or losses. The trust has appointed Morgan Meighen & Associated Limited as its investment manager.
As of 31 January 2022, the trust’s total assets stood at £1,344.61 million, its 10-year share price total return stood at 257.26%- and 30-year share price total return stood at 4,621.11%.
Canadian General Investments Ltd has given a return of 12.88% to its shareholders in the last one year and its year-to-date return stands at -6.14% as of 9 February 2022. Its shares were trading at GBX 2,430, up by 1.25%, at around 9:35 AM BST, with a market capitalization of £506.93 million on 9 February 2022.
