A total of 32 investment trusts would have made you a millionaire if you invested the full annual ISA allowance in the same trust every year since 1999, according to data from the Association of Investment Companies (AIC).
The top performers, HgCapital trust and Allianz Technology trust would have turned £306,560 – aggregate total ISA allowance over the past 25 years – into £2m.
The top ten are dominated by tech and Asia-focused trusts, with two of the top five performers, HgCapital Trust and Scottish Mortgage having large exposures to unlisted private companies.
Meanwhile, 12 of the 32 millionaire trusts are in the smaller companies sector. Four of those focused on the UK, three focused on Asia and three focused on Europe. Only one focused on the US.
Annabel Brodie-Smith, communications director at the AIC, said: “It’s been a challenging time for investors recently, with high inflation coupled with geopolitical tensions and an uncertain outlook.
“In difficult times, it’s important for investors to take a long-term approach to their investments. Investment trusts have been in existence for more than 155 years, surviving two World Wars, the Great Depression, the 1970s era of high inflation, the tech boom (and bust), the financial crisis and the pandemic.
“They have a fixed pool of capital which means investment trust managers can take a long-term view of their portfolio, holding on to assets during market downturns, rather than being forced to sell them at cheap prices.”
RankTrust nameAIC sector% share price total return, 06/04/1999 to 31/01/2024Total ISA investment value at 31/01/20241HgCapital TrustPrivate Equity3,700£2,254,3912Allianz Technology TrustTechnology & Technology Innovation1,894£2,095,9553Polar Capital TechnologyTechnology & Technology Innovation1,573£1,912,6564Scottish MortgageGlobal1,366£1,639,2615Scottish Oriental Smaller CompaniesAsia Pacific Smaller Companies4,024£1,538,5896abrdn Asia FocusAsia Pacific Smaller Companies3,742£1,491,4357JPMorgan AmericanNorth America889£1,413,5008Pacific Horizon Investment TrustAsia Pacific2,334£1,303,2709JPMorgan Global Growth & IncomeGlobal Equity Income923£1,268,89810BlackRock Throgmorton TrustUK Smaller Companies1,252£1,214,138Source: The Association of Investment Companies