Gold Rated Top Performing Trusts

These three investment trusts have not only earned the top Gold rating from analysts, but they have also outperformed their peers resulting in a five star status

Emma Wall 10 February, 2015 | 4:48PM
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This article is part of Morningstar’s Guide to Investment Trusts, highlighting the benefits of these unique investment vehicles – busting the investment trust jargon, revealing potential pitfalls and celebrating those experienced managers who have earned the top ranking from Morningstar fund analysts.

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These three investment trusts have been rated Gold by Morningstar analysts, meaning Morningstar analysts think highly of the fund and expect it to outperform over a full market cycle of at least five years. Unlike the backward-looking Morningstar star rating, which assigns one to five stars based on a fund’s past risk- and load-adjusted returns versus category peers, the analyst rating is the summary expression of Morningstar’s forward-looking analysis of a fund.

The investment trusts we are highlighting have also been star rated with five stars, meaning it is in the top 10% of its sector ranked on a trailing three, five or 10 year basis.

Finsbury Growth & Income (FGT)

This UK equity trust features an experienced, talented, and pragmatic manager. Nick Train draws on his three decades of expertise, which cover a number of market cycles.

Having started his career as an investment manager at GT Management in 1981, he was appointed to run Finsbury Growth and Income in December 2000, just a few months after founding Lindsell Train, together with Michael Lindsell. That was a leap of faith on the part of the board, in that the newly formed firm was launched at a difficult time in markets, following the TMT-led crash, but it is a move that has paid off.

Aberdeen Asian Smaller Companies (AAS)

Morningstar analysts think the team behind this trust is one of the best in its field. Led by Hugh Young, who himself has more than 25 years of investment experience in Asian equities, it is a stable team with longevity of both experience and tenure at Aberdeen.

The team is based across the region and analysts think this is particularly beneficial when investing in smaller stocks, and the team members themselves cite it as a crucial factor in their investment approach. Company meetings pay a critical role in their process and they will not invest in any company they have not first met.

Baillie Gifford Japan (BGFD)

BGFD boasts seasoned management that has been stable since 1991, when Sarah Whitley took charge. Whitley has spent nearly 30 years investing in Japanese equities at Baillie Gifford and heads the Japanese equity team, comprising five members. It’s a specialist team that runs only Japanese equity portfolios, the majority of which are in segregated mandates.

That depth of experience has been invaluable. Whitley has invested through a variety of market conditions in Japan and this is another reason for our conviction. She has delivered solid returns for shareholders over her tenure, even when the market itself has been down or flat.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
abrdn Asia Focus plc290.00 GBX1.40Rating
Baillie Gifford Japan Ord709.00 GBX-0.14Rating
Finsbury Growth & Income Ord890.00 GBX0.23Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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