By their nature, investment trusts are designed for long-term investing. This is a message that has been reinforced in the findings of recent research from the Association of Investment Companies (AIC).

The AIC has found that 50 investment trusts would have made investors ISA millionaires if they had invested their full ISA allowance in them each year between 1999 and 2024. To read more about the research and its full methodology, please click here.

Among the trusts managed by Janus Henderson Investors, three were named as part of the list. Per the research, from an initial investment of £326,560 invested over the period:

• The European Smaller Companies Trust (formerly TR European Growth) would have left investors with £1,295,133.
• Henderson European Trust (formerly Henderson European Focus Trust) would have left investors with £1,146,372.
• Bankers Investment Trust, which invests in global stocks, would have left investors with £1,103,182.

Investment trusts have several features that aid long-term investing. Most notably, a permanent capital structure means that investment trusts are never forced sellers of the underlying assets they invest in, regardless of market turmoil or investment fads. This is particularly beneficial when investing in something with less liquidity, like smaller companies.

They are also able to use facilities like gearing – borrowing money – to enhance returns when borrowing is cheap and they see opportunity in the market (although it must be stressed that gearing can also exacerbate losses).

To find out more about our range of trusts, please click here.

Find out more about the AIC’s ISA millionaires here.

Disclaimer

Use of third party names, marks or logos is purely for illustrative purposes and does not imply any association between any third party and Janus Henderson Investors, nor any endorsement or recommendation by or of any third party. Unless stated otherwise, trademarks are the exclusive property of their respective owners

Not for onward distribution. Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority), Tabula Investment Management Limited (reg. no. 11286661 at 10 Norwich Street, London, United Kingdom, EC4A 1BD and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 78, Avenue de la Liberté, L-1930 Luxembourg, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).

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