However, according to the AIC’s recent list of the top-20 most consistent investment companies of the last decade, emerging markets and European vehicles proved some of the biggest gainers overall, although with slightly less consistency than those that focus on the Asia Pacific.
FE Trustnet looks at the four trusts in this area that made the list – Genesis Emerging Markets, Aberdeen New Thai, Jupiter European Opportunities and European Assets IT.
Genesis Emerging Markets
Now that the leaders in the emerging markets space – Aberdeen and First State – have soft-closed most of their flagship funds, investors are finding it more and more difficult to find quality funds to give them exposure to this sector.
The four crown-rated Genesis Emerging Markets trust is not only one of the most consistent investment companies of the last 10 years, but it is headed up by Aberdeen’s Andrew Elder, giving investors exposure to the firm’s expertise in the sector.
It has beaten the average investment trust and its MSCI EM IMI benchmark in eight of the last 10 calendar years. It only lagged the index in 2007 and 2008.
Genesis Emerging Markets shed nearly 50 per cent of its value at the height of the credit crunch, but over the long-term it has delivered strong returns for investors.
Over the last 10 years, the trust has made 571.91 per cent while the index has gained 378.25 per cent, according to FE Analytics.
Performance of trust vs index over 10yrs
Source: FE Analytics
The trust is trading on a discount of 5.6 per cent, which has widened from 3.2 per cent at the end of March. It is not geared.
Genesis Emerging Markets has ongoing charges of 1.69 per cent.
Aberdeen New Thai
For investors who are willing to take a more high-conviction stance on a single country in emerging markets, the Aberdeen New Thai IT has not only smashed the performance of other single-country trusts over 10 years, it has also been more consistent, beating the average trust in seven out of the last 10 years.
It has also outperformed the Stock Exchange of Thailand – its benchmark – in six of the last 10 calendar years, lagging it in 2004, 2007 and the recovery period of 2009 to 2010.
The five crown-rated trust has returned a stellar 1,135.88 per cent over the last decade. Thailand’s benchmark index has made 861.82 per cent over the period.
Aberdeen New Thai is trading on a discount of 6.4 per cent, with no gearing. It has a dividend yield of 1.2 per cent and ongoing charges of 1.55 per cent.
The trust’s biggest sector positions are banks and basic materials, with Siam Commercial Bank and Kasikornbank featuring in its top-10 holdings.
Jupiter European Opportunities
As the only large cap European portfolio to feature in the AIC’s list of 20 most consistent trusts of the decade, the five crown-rated Jupiter European Opportunities IT is a standout performer in a number of ways.
It has beaten the average trust in eight out of the last 10 years, and trumped the FTSE Europe ex UK index eight times.
It has gained 534.77 per cent over the last decade, more than four times the returns of its benchmark.
Performance of trust vs index over 10yrs
Source: FE Analytics
It is trading on a premium of 1.4 per cent with 13 per cent gearing. It has a dividend yield of 0.5 per cent and has ongoing charges of 1.19 per cent.
It is headed up by FE Alpha Manager Alexander Darwall. For a more in-depth look at the trust, see FE Trustnet's weekend coverage.
European Assets Trust
Run by F&C Asset Management’s Sam Cosh, the five crown-rated European Assets IT has been one of the most consistent trusts of the last decade.
It has beaten the average investment company in seven out of the past 10 years and outperformed its benchmark – the HSBC European Smaller Companies ex UK index – four times.
Over the last decade, European Assets has gained 329.86 per cent while the index has picked up 239.13 per cent, according to FE Analytics.
The trust is trading on a discount of 2.8 per cent, with 6 per cent gearing, according to the AIC.
It has the highest dividend yield of any trust on this list, at 5.5 per cent. Ongoing charges for the trust stand at 1.71 per cent.
The Netherlands-domiciled trust is tipped towards consumer products, with 30.91 per cent in the sector. Its second highest weighting is to financials, at 21.38 per cent.
