Trust Intelligence

London, 18 January 2024 – Kepler Trust Intelligence (‘KTI’) has published its 2024 investment trust ratings, celebrating the top investment trusts in the growth, income & growth and alternative income categories.

KTI’s proprietary, quantitative rating system is designed to highlight trusts which have demonstrated attractive and consistent performance characteristics over the long-term, using the advantages of the investment trust structure to benefit shareholders.1

The ratings are updated annually by KTI analysts and are wholly unbiased by commercial interests, recognising trusts based purely on performance in three categories: long-term growth, income and growth, and high current income.1

Thomas McMahon, Investment Trust Research Manager at KTI, commented, “The past year saw challenging macro conditions filter down into the investment trust space, but many funds in the sector have proved resilient. Our 2024 ratings highlight a suite of trusts with different styles and strategies, all of which have a proven track record of strong risk-adjusted performance versus underlying markets and a stable management team.

For investors seeking active exposure, the investment trust space is full of talented managers with interesting and idiosyncratic strategies – our ratings showcase some of the best with the potential to outperform in multiple environments.”

Growth Rated Funds

Of note, this year’s list indicated strong performance from a number of income-focused funds in total return terms, including Dunedin Income Growth (DIG), Murray Income Trust (MUT) and JPMorgan Global Emerging Markets Income (JEMI). Ashoka India Equity (AIE) also joined the list for the first time, entering at the top of the rankings given its outstanding active record.

Strong total returns from equity income funds could be a trend in the coming years, with low starting valuations, meaning high yields, and a higher interest rate environment creating favourable tailwinds.

Income & Growth Rated Funds

A key theme to emerge is the prevalence of small and mid-cap-focused funds in the Income & Growth category. Low valuations, particularly in the UK, have created interesting opportunities, with funds like Schroder UK Mid Cap (SCP) offering a long-term growth play. Mercantile (MRC) and Schroder Oriental Income (SOI) also offer exciting opportunities, particularly for investors seeking a growing income stream over multiple years whilst growing their capital, along with those who favour the more defensive attributes of equity income as a total return strategy.

Alternative Income Rated Funds

KTI’s 2024 ratings evaluated funds across a range of alternatives sectors, ultimately recognising those that have succeeded in maintaining or growing both their dividend and their NAV on a five-year basis. The funds below have demonstrated proof of concept in a relatively young asset class where many have not yet established a firm track record.

14 alternatives funds were awarded ratings this year, up from 11 in 2023, with an energy storage fund – Gresham House Energy Storage (GRID) – appearing on the list for the first time.

1Full methodology available here (appendix).

-ENDS-

Media contact
Catriona Crellin, Head of PR
catriona@keplerpartners.com
0203 887 6915

About Kepler Trust Intelligence
Kepler Trust Intelligence offers up-to-date investment strategy research, fund analysis and useful guides for professional and private investors, all written in-house by Kepler’s experienced analysts. Kepler Trust Intelligence is updated every week with an analysis of the key issues which face investors, providing detailed whole-of-market research on investment trusts across a wide range of sectors. The website is free to read and acts as a valuable, investment bank-quality resource in a post-MIFID world. Research from Kepler Trust Intelligence was read by more than 370,000 investors in 2023.

https://trustintelligence.co.uk/

Back to News

Contacts

Catriona Crellin

Head of PR

Georg Reutter CFA

Head of Asset Management, Partner

Pascal Dowling

Head of Funds Marketing, Partner