Queen’s platinum jubilee: investments that have stood the test of time

As the UK prepares to celebrate Queen Elizabeth’s Platinum Jubilee on Sunday 6 February 2022, figures from the Association of Investment Companies (AIC) show that almost a quarter of investment companies by assets were in existence at the time of the Queen’s accession to the throne some 70 years ago. Six of these investment companies are Elite Rated by FundCalibre.

Annabel Brodie-Smith, communications director at the AIC, said: “It’s a testament to the investment company sector that 35 companies were around at the time of the Queen’s accession to the throne and are still delivering excellent long-term performance to shareholders.

“It’s also reassuring for investors to see that over the last 70 years, investment companies have survived bouts of market turbulence including the 1973 to 74 crash, Black Monday in 1987, the dot-com boom and bust, the financial crisis and the pandemic. Since the first investment company launched in 1868, the industry has weathered two World Wars and the Great Depression.

“Investment companies have pioneered investing in a wide range of assets including emerging markets, renewable energy infrastructure and unquoted companies. They also have unique income advantages and the benefit of an independent board of directors to look after shareholders’ interests, qualities that stand them in good stead for the future.”

Find out more about investment trusts in our short video series.

Elite Rated investment companies launched at least 70 years ago:

BMO Global Smaller Companies (launched 15 February 1889)

Manager Peter Ewins has run this trust since 2005. He says: “My colleagues would say I am a born pessimist and that sometimes helps when considering the risks in small-cap investing. But the real joy of the job is the scope to unearth some of the next generation of winning business franchises.” Peter spoke to us in January 2022 about the opportunities in global smaller companies.

City of London (launched 1 January 1891)

Job Curtis has run this UK equity income trust for the past three decades. He says: “I have a conservative personality and it is reflected in the portfolio. I pay attention to the downside risks as well as the upside potential.” The trust invests predominantly in larger UK companies with international exposure and has increased its dividend payment every year for the past 54 years.

TR Property (launched 5 May 1905)

This trust invests in the shares of property companies, typically within Europe and the UK. It will also have a small amount invested in physical property in the UK. Although it has a history dating back to 1905, it became a real estate specialist vehicle in 1982. Marcus Phayre-Mudge has run it since 2004 and says: “Property is a fairly niche investment, but the world is my investment universe and well-run property businesses are what I seek.”

Murray International (launched 18 December 1907)

Straight-talking manager Bruce Stout has been in charge of this trust since 2004. He says: “Followers of investment fashion invariably pay extravagant prices to own the latest, must-have, in vogue stocks. For those of a thriftier disposition, our investment process focuses more on sustainable, long-term growth opportunities where valuations have yet to reflect widespread popular recognition.”

Scottish Mortgage (launched 17 March 1909)

This trust no longer has a focus on Scottish investments and has nothing to do with mortgages. These days, it typically holds between 50 and 100 companies worldwide, united by their strong growth prospects. Co-manager Tom Slater has helped run the trust since 2010 and says: “We want our shareholders to benefit from the transformational growth opportunities that abound in this era of accelerating change.”

Murray Income (launched 7 June 1923)

Charles Luke has managed this trust since 2006 and aims to provide a high and growing income combined with capital growth by investing in a portfolio of 30-70 UK companies. He runs the trust in a conservative manner and targets resilient companies which can thrive in any economic scenario. The trust has grown its dividend for investors for almost 50 years.

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.