As the markets tumble, many investors are looking towards investment trusts and active managers to help with portfolio damage control. It’s during such bad times that you really get to see if fund managers are worth their salt!
I’m going to reveal the ten best-performing trusts from January, do some digging into these choices and let you know about some different ways you can invest in the current climate.
What were the best-performing investment trusts last month?
According to recent data published by Interactive Investor, these were the best-performing investment trusts last month:
| Position | Investment trust | Total January return |
| 1 | Origo Partners (OPP) | 36.1% |
| 2 | Riverstone Energy (RSE) | 19.1% |
| 3 | Livermore Investments (LIV) | 18.1% |
| 4 | Infrastructure India (IIP) | 14.8% |
| 5 | Doric Nimrod Air One (DNA) | 12.5% |
| 6 | Amedeo Air Four Plus (AA4) | 12.4% |
| 7 | BMO Commercial Property Trust (BCPT) | 9.5% |
| 8 | Temple Bar Investment Trust (TMPL) | 9.4% |
| 9 | UK Commercial Property REIT (UKCM) | 9.4% |
| 10 | BlackRock Energy and Resources Income Trust (BERI) | 9.2% |
What do we know about these top-performing investment trusts?
Here’s a quick overview of the top investments trusts from last month.
1. Origo Partners (OPP)
This is an interesting fund, to say the least. The bulk of the focus is on China and Mongolia. The trust’s main aim is to grow your capital by investing in infrastructure and industrial sectors. This includes areas such as mining and agriculture, but also telecommunications.
2. Riverstone Energy (RSE)
The name gives it away, really. Yes, this closed-end fund is all about energy. Aiming to grow capital through smart investments in the energy industry, Riverstone invests globally across different natural resources, some of which are renewable.
3. Livermore Investments (LIV)
Livermore is an income-focused investment trust that concentrates on developing a regular cash flow for stability and rewarding investors with dividend payments. The bulk of the investing method is centred around US loans and securities.
4. Infrastructure India (IIP)
Focusing on assets within India’s energy and transport sectors, this trust aims to grow both capital and income returns. Because this fund is centred around one country, it offers less diversification compared to funds that invest in multiple countries.
5. Doric Nimrod Air One (DNA)
This investment trust is pretty unique. The goal is to provide income and capital returns for investors by acquiring, leasing and selling a single aircraft. So, the fund bought an aeroplane back in 2010 and has been leasing it out to Emirates Airlines ever since.
What can we learn from these choices of investment trusts?
You can see clearly from these top performers that there’s been a massive shift in the investments that are making the most money right now.
A lot of these funds focus on areas such as value investing, commodities, infrastructure, energy and property.
It’s definitely a different picture compared to the last few years in which we’ve seen plenty of tech and growth funds flying. This is a great example of why it’s best to create yourself a portfolio with plenty of diversification so that you can do well in every kind of investing climate.
Are there alternative ways to invest?
Investment trusts are a great option if you want a piece of your portfolio managed for a relatively low cost. But there can be greater risks because the funds can borrow money and you’re reliant on the managers performing well.
Another option is to use a top-rated share dealing account to purchase broad index funds that track whole markets. This keeps your costs down and can be less risky than some managed funds. Ideally, you should use an account such as the Interactive Investors Stocks and Shares ISA, as a tax-efficient way to invest in funds and shares.
If you really want to be hands-off with your investments and let someone else manage your portfolio, it’s worth checking out a robo-advisor platform that you can simply set and forget.
Just remember that all investing carries risk and you may get out less than you put in, especially in periods of volatility. So, try to keep a long term-mindset and only invest what you can afford to lose.
Don’t leave it until the last minute: get your ISA sorted now!
If you’re looking to invest in shares, ETFs or funds, then opening a Stocks and Shares ISA could be a great choice. Shelter up to £20,000 this tax year from the Taxman, there’s no UK income tax or capital gains to pay any potential profits.
Our Motley Fool experts have reviewed and ranked some of the top Stocks and Shares ISAs available, to help you pick.
Investments involve various risks, and you may get back less than you put in. Tax benefits depend on individual circumstances and tax rules, which could change.
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About the author
George is a freelance writer focused on educating others in personal finance, tax, and investing. He’s a qualified Financial Adviser and previously worked within property and insurance in a number of different countries…. Read More
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