While the IT UK Smaller Companies sector had more trusts in the top-20, their returns were not as high as the best-performing Asia Pacific trusts, which account for three of the top-five in terms of consistency and performance.
Top-20 most consistent trusts of the decade
| Name | Years of outperformance | 10 yrs (%) |
|---|---|---|
| Scottish Oriental Smaller Companies | 9 | 826.88 |
| F&C Global Smaller Companies | 9 | 485.14 |
| Aberdeen New Dawn | 9 | 534.85 |
| Aberdeen Asian Smaller Companies | 8 | 1,037.73 |
| Jupiter European Opportunities | 8 | 557.67 |
| Dunedin Smaller Companies | 8 | 392.9 |
| Genesis Emerging Market | 8 | 582.8 |
| Finsbury Growth & Income | 8 | 383.34 |
| HgCapital | 8 | |
| Montanaro UK Smaller Companies | 8 | 400.74 |
| Aberdeen New Thai | 7 | 1,114.93 |
| Edinburgh Dragon | 7 | 524.76 |
| Standard Life UK Smaller Companies | 7 | 808.12 |
| Henderson Smaller Companies | 7 | 460.37 |
| JP Morgan Smaller Cos IT |
7 | 386.58 |
| Schroder Asia Pacific | 7 | 446.52 |
| BlackRock Smaller Companies | 7 | 527.89 |
| European Assets | 7 | 340.81 |
| Invesco Perpetual UK Smaller Companies | 7 | 352.75 |
| Murray International | 7 | 431.94 |
Source: FE Analytics and the AIC
One thing many of the top trusts have in common is manager tenure, with a large proportion headed up by the same person for at least a decade, far longer than the majority of open-ended funds.
"The figures suggest fund manager longevity may also play a role in delivering strong, consistent performance," said the AIC.
"More than half of the investment companies have had the same manager at the helm for at least a decade, with a number of other companies having the same manager for close to a decade."
FE Trustnet looks at the Asia Pacific trusts that have benefited from this sort of experience and found themselves at the top of the performance and consistency tables over the 10 years.
Scottish Oriental Smaller Companies
First State’s four crown-rated Scottish Oriental Smaller Companies IT is the most consistent trust on the list, outperforming the average investment company in nine out of the last 10 years.
It has also outperformed its benchmark, the MSCI Asia ex Japan index, in seven out of the last 10 years.
Year-on-year performance of trust vs index
| Name | 2012 (%) | 2011 (%) | 2010 (%) | 2009 (%) | 2008 (%) | 2007 (%) | 2006 (%) | 2005 (%) | 2004 (%) | 2003 (%) |
|---|---|---|---|---|---|---|---|---|---|---|
| Scottish Oriental Smaller Companies | 45.14 | -12.92 | 52.15 | 99.2 | -25.89 | 11.33 | 18.59 | 36.6 | 1.1 | 56.5 |
| MSCI Asia ex Japan | 16.99 | -16.69 | 23.38 | 53.2 | -34.07 | 37.77 | 16.94 | 37.21 | 9.42 | 31.8 |
Source: FE Analytics
The trust has returned 826.88 per cent over the last decade while the index has made just 326.25 per cent, according to FE Analytics.
However, long-time manager Susie Rippingall retired last month after 10 years at the helm. The trust has been taken over by Wee-Li Hee, Scott McNab and FE Alpha Manager Angus Tulloch.
In spite of the recent manager change, the trust is still trading on a premium of 1.2 per cent, with no gearing. It has a dividend yield of 1.2 per cent.
The trust has ongoing charges of 1.96 per cent, including a performance fee.
Aberdeen New Dawn
The third most consistent and best performing trust is Hugh Young’s Aberdeen New Dawn.
Young has been managing the investment company since May 1989, alongside Aberdeen’s Asia-Pacific team.
It has beaten the average investment company in nine out of the last 10 years, returning 534.85 per cent.
It has also beaten the MSCI Asia Pacific ex Japan index in six out of the last 10 years, according to FE Analytics.
Aberdeen New Dawn is trading on a discount of 7.6 per cent with 7 per cent gearing. It has a dividend yield of 1.3 per cent and ongoing charges of 1.05 per cent.
Aberdeen Asian Smaller Companies
Aberdeen is well known for its dominance in emerging markets, but with the soft-closure of its flagship Aberdeen Emerging Markets fund, investors are having to look elsewhere for exposure to this sector.
Investors can still access the firm’s talent in Asia through the five crown-rated Aberdeen Asian Smaller Companies IT, which is the fourth most consistent trust over the last decade.
It has beaten the average investment company in eight out of the last 10 years.
Its benchmark, split between the MSCI Asia Pacific ex Japan and MSCI Asia Pacific ex Japan Small Cap indices, only has a five-year track record but the Aberdeen trust has beaten it in four out of the last five years.
Over the last decade, Aberdeen Asian Smaller Companies has made an impressive 1,037.73 per cent.
It is trading on a premium of 5.5 per cent with 4 per cent gearing, according to the AIC. It has a dividend yield of 0.9 per cent and ongoing charges of 1.51 per cent.
Edinburgh Dragon
Another Aberdeen trust focused on the Asia Pacific, the Edinburgh Dragon IT has beaten the average investment company in seven out of the last 10 years, ranking it 12th overall in terms of consistency and performance.
Over the last decade, the trust has made 624.76 per cent, while the MSCI Asia Pacific ex Japan index has gained 418.07 per cent.
Performance of trust vs index over 10yrs
Source: FE Analytics
Edinburgh Dragon has beaten the index in seven out of the last 10 years.
The trust is trading on a discount of 6.7 per cent and has a dividend yield of 0.7 per cent. It is 10 per cent geared, with ongoing charges of 1.27 per cent.
Schroder Asia Pacific
The four crown-rated Schroder Asia Pacific IT also ranks among the most consistent trusts of the last decade, beating the average trust in seven out of the last 10 years.
Over the last decade, Schroder Asia Pacific has made 546.52 per cent, while its MSCI Asia ex Japan index benchmark has gained 426.25 per cent.
The £396.3m trust has been managed by Matthew Dobbs since launch in 1995. Dobbs also runs the five crown-rated Schroder Oriental Income and Schroder Asian Alpha Plus funds.
The trust is trading on a wide discount of 10.2 per cent, with no gearing. It has a dividend yield of 1.2 per cent and ongoing charges of 1.18 per cent.