Top 10 global growth trusts over 5-yrs
| Trust |
5-year return |
Discount |
| Lindsell Train IT |
95.33 |
+8.63 |
| Mid Wynd International IT |
84.21 |
+2.69 |
| Jupiter Primadona Growth Trust |
84.02 |
-9.07 |
| Gartmore Global Trust |
72.31 |
-5.08 |
| Scottish Mortgage Investment Trust |
70.50 |
-10.33 |
| JP Morgan Overseas IT |
58.31 |
-1.66 |
| F&C Global Smaller Companies | 51.25 |
-7.17 |
| Establishment Investment Trust |
49.66 |
-14.06 |
| Law Debenture IT |
48.88 |
+2.8 |
| Monks Investment Trust |
47.91 |
-9.93 |
Source: Financial Express Analytics
"Growth investment is increasingly in style, and people are even willing to pay more for that type of vehicle. The investment trust global growth sector offers some good deals," said Ben Willis, head of investment research at Whitechurch Securities.
Unsurprisingly, trusts with a high exposure to emerging markets dominate the top performers. Within that, though, some take a more niche approach.
Lindsell Train Investment Trust, headed up by Nick Train, tops the list, with returns of 95.3 per cent over five years. Its highest regional weighting is to the UK. The group caught investors' attention in August when multi-manager Witan handed Train £100m to manage its UK mandate. The Lindsell Train portfolio is a favourite amongst analysts, who like its concentrated portfolio.
"Train likes sustainable brands, which he holds on to for long periods of time. He's got a good style," Winterflood Securities' James Brown said.
The trust's volatility score is just 0.6 per cent higher than the sector average over five years, while the returns are 66 per cent higher. The company is trading at a premium, however.
Meanwhile, Establishment Investment Trust completely avoids the west. Managers Rob Brewis, Henry Thornton and Simon Dobson are extremely bearish on the prospects for growth in the US, and have their entire portfolio invested in Asia.
"The only place to have your money for the past eight years, and for the next 15, is in Asia, Thornton said.
Despite its emerging markets leaning, the company has avoided the popular mining sector in its holdings.
"We don’t like companies which can't control their pricing mechanisms, so avoid any investment in miners, or companies which rely on commodity prices," Thornton said.
Another emerging markets play is Baillie Gifford's Scottish Mortgage Investment Trust. The group took a real hit at the end of 2008, with returns dropping by 50 per cent from May to November that year, but has recovered well since.
"Investors should know that this trust has completely turned around over the past five years, and it's more aggressive now. While its performance has been volatile, the outlook is positive," Brown said.