2021’s Best- And Worst-Performing Trusts

2021’s Best- And Worst-Performing Trusts

Many global stock markets hit record highs in 2021, despite the volatility caused by a new coronavirus variant at the end of the year.

Active fund managers have largely prospered in this environment, beating the market in many cases. We have looked at the performance of the investment trusts with a Morningstar Analyst Rating in 2021. There’s been a big shake-up in the top and bottom funds from a year ago.

Some of 2020’s biggest winners couldn’t repeat the same performance in 2021, while some laggards have shot to the top of the table. For example, 2020’s top trust (Scottish Mortgage) fell to 21st place last year, while Fidelity Special Values soared from 34th to second place.

This is partly down to an abrupt shift in the investment landscape in 2021: China was the place to be invested in during 2020 but less so last year, while energy and financial stocks made a strong comeback. Trusts invested in 2020’s hot US stocks like Tesla (TSLA) like Scottish Mortgage continued to do well, but couldn’t match that year’s astonishing performance. In general, smaller companies and European trusts outshone those focused on Asia and emerging markets.

Investment trusts use gearing (debt) to enhance their returns, so