The investments trusts which turned £3k into big six figures in 18 years

Had Junior ISAs existed 18 years ago an investment into the likes of HgCapital Trust and BlackRock Latin America would have made a very nice 'coming of age' gift.    

According to figures from the Association of Investment Companies (AIC) , investing £3,000 a year into the typical closed-ended fund swelled to £121,109 over 18 years. The top performing trusts eligible for inclusion in junior ISAs have made more than double this figure, generating in excess of £270,000 each for investors.

£343 million private equity trust HgCapital, which trades at 1,060p per share and on a 3,7% discount, turned a yearly £3,000 investment - the annual sum that can be invested tax fee ISAs for children - into £277,131 over the stretch analysed by the AIC.

BlackRock's £315 million Latin American vehicle, managed by Will Landers, made £273,232 over the same period, while Templeton Emerging Markets investment trust, which has £2.3 billion in net assets and trades on a 6.6% discount, turned the basic £3,000 annual investment into £244,208.

In Europe, the £472 million JP Morgan European Smaller Companies Trust, managed by Francesco Conte and Jim Campbell, came fourth in the AIC's list of junior ISA picks after earned £240,366 for ISA holders investing the same £3,000 yearly sum. 

Closed-ended commercial Property vehicle TR Property, managed by Chris Turner, came fifth in the AIC's ranking.  An analysis using the same parameters made £235,206 over 18 years for investors.

The government yesterday unveiled its draft regulations on junior ISAs, setting an increased limit of £3,000 on the yearly sum that can be invested on behalf of children aged 18 years and under.

'The availability of junior ISAs to all children up to age 18 and the increased limit to £3,000 a year will boost savings for children,' Ian Sayers, director general of the AIC said.  'The rules offer sufficient commercial flexibility to allow providers to offer an attractive and low cost product.'

'Looking to the future we hope the government will align Child Trust funds with junior ISAs to streamline the system,' Sayers (pictured) added.