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Best and worst performing investment trusts in 2012
We look at a half-year review of the investment trust sector to see where the best and worst returns were to be found in the first six months of the year.
Markets
Investment trusts enjoyed a good first half of the year raising more money than a year ago and demonstrating some good returns, according to Numis Securities.
In a half-year review the broker says that in the six months to the end of June the FTSE Investment Companies index returned 4.7%, beating the FTSE All Share index return of 3.3%.
A total of £1.9 billion of new money was raised, up from £1.4 billion in the same period last year. Over a quarter - £500 million - was raised by infrastructure trusts offering high, sustainable yields to income starved investors.
Trusts in the UK Growth & Income and UK Smaller sectors were the strongest performing sectors, while the North America, Japan and Emerging Markets sectors underperformed and hedge funds came under pressure, with Absolute Return and TR Hedge+ trusts both announcing plans to return capital to shareholders.
Best trust performers in the first half of 2012
| Fund | Sector | % share price return in £ | Market cap (£m) | % discount (-) or premium |
|---|---|---|---|---|
| Biotech Growth Trust | Biotech | 44.9 | 176.0 | 1.1 |
| SVG Capital | Private equity | 36.2 | 781.0 | -29.4 |
| Std Life Investment Property Inc | UK property | 26.8 | 87.0 | 2.2 |
| Aberdeen New Thai | Thai equity | 23.1 | 62.0 | -13.4 |
| AP Alternative Assets | Private equity/debt | 23.0 | 571.0 | -45.1 |
| Better Capital 2009 | UK turnaround PE | 22.8 | 309.0 | 20.7 |
| Aberdeen Asian Smaller Cos | Asia: Small Cos | 22.6 | 256.0 | 0.6 |
| Inte rnational Biotechnology | Biotech | 21.2 | 107.0 | 13.2 |
| Baker Steel Resources | Mining | 21.0 | 62.0 | 17.9 |
| Unitech Corporate Parks | Indian property | 19.8 | 112.0 | 34.5 |
Source: Numis Securities
The Biotech Growth trust was the best performing investment trust in the first six months of the year, with a share price return of 45%. Its top holdings include drugs companies Amgen and Gilead Sciences, which have both seen share price rises of over 20% this year.
Private equity trust SVG Capital is in second place with a share price return of 36%. The trust saw off a shareholder revolt in March tas two of its biggest investors attempted to block its plans to diversify its holdings beyond buy-out group Permira. It also benefited from the sale of TV software company NDS to Cisco, making a 220% profit in March.
Standard Life Investment Property Income trust also gained 27%. The trust yields 7% and Jason Baggaley, manager of the trust, told Citywire Money in a video interview that demand from income investors helped drive the share price.
Other winners in the first half include: Aberdeen New Thai , AP Alternative Assets, Better Capital 2009 , Aberdeen Asian Smaller Companies , International Biotechnology , Baker Steel Resources and Unitech Corporate Parks.
Worst trust performers in the first half of 2012
| Fund | Sector | % share price return in £ | Market cap (£m) | % discount (-) or premium |
|---|---|---|---|---|
| Origo Resource Partners | China: resources/PE | -33.6 | 84.0 | 45.9 |
| Vinaland | Property: Vietnam | -28.8 | 151.0 | -59 |
| Mirland Development Corp | Property: Russia | -28.3 | 108.0 | -47 |
| Redefine International | Property: Europe | -28.1 | 158.0 | -40.5 |
| Infrastructure India | India: infrastructure | -24.9 | 107.0 | -39.3 |
| Phaunos Timber | Timber | -23.3 | 175.0 | -49.5 |
| JPMorgan Private Equity | Fund of PE funds | -22.8 | 164.0 | -41.7 |
| Ma rwyn Value Investors | UK small cap | -18.8 | 76.0 | -33.8 |
| Damille Investments II | Fund of funds | 18.0 | 62.0 | -12.2 |
| Dolphin Capital Investors | Property: Greece/Cyprus | -16.9 | 123.0 | -86.3 |
Source: Numis Securities
Emerging market resources and property trusts suffered some of the biggest losses in the first half of the year.
Origo Partners , which invests in Chinese resources and private equity, fell 33.6% as it struggled to bring companies to market or find trade buyers for them.
It was closely followed by Vietnamese property trust Vinaland and Russian property trust Mirland Development, which lost 29% and 28% respectively in the first half.
Other big fallers include: Redefine International , Infrastructure India , Phaunos Timber , JP Morgan Private Equity, Mar wyn Value Investors , Damille Investments II and Greek property trust Dolphin Capital Investors.
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Look up the investment trusts
- Biotech Growth (Ordinary Share)
- SVG Capital (Ordinary Share)
- Standard Life Property Income (Ordinary Share)
- Aberdeen New Thai (Ordinary Share)
- Better Capital PCC 2009 (Ordinary Share)
- Aberdeen Asian Smaller (Ordinary Share)
- International Biotechnology (Ordinary Share)
- Baker Steel Resources (Ordinary Share)
- Origo Resource Partners (Ordinary Share)
- Vinaland (Ordinary Share)
- Redefine International (Ordinary Share)
- Infrastructure India (Ordinary Share)
- Phaunos Timber (Ordinary Share)
- Marwyn Value Investors (Ordinary Share)
- Absolute Return Trust GBP (Ordinary Share)
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