Investment trusts beat open-ended funds during Q1
The group’s latest quarterly review has found that 13 out of 15 investment trust sectors outperformed their open-ended investment company (Oeic) equivalents.
The best results were reported in the UK Small Cap and UK Growth sectors which outperformed their open-ended mirrors by 9.4% and 4.4%, respectively.
“For the small cap sector this is partly as a result of discounts tightening, although primarily as a result of superior NAV [net asset value] performance,” according to Winterflood.
Taken over the long term, the Japanese equities sector is the only one which fails to outperform its open-ended equivalent.
UK Growth and UK Growth & Income deliver the best outperformance over a period of ten years, with 6.3% and 6.2%, respectively.
Over this same period, the Japan investment trust sector finished 0.4% below the open-ended equivalent.
The best performing investment trust during the first quarter was the Baker Steel Resources investment trust, which delivered a total return of 49.2%, followed by the SVG Capital closed-end fund, with a total return of 40.5%.
The worst performing investment trust, according to Winterflood, was the Axa Property Trust, making a total loss of 14.1% during the first quarter.