From MoneyWeek · · 5m
14 years of the MoneyWeek investment trust portfolio
A set-and-forget portfolio of six investment trusts has returned 248% since 2012, beating the UK index but matching global returns, with only six changes in 14 years.
In brief
A set-and-forget portfolio of six investment trusts has returned 248% since 2012, beating the UK index but matching global returns, with only six changes in 14 years. Frequent portfolio changes hurt returns about half the time; the best strategy is to pick quality trusts and leave them alone. Originally reported by…
A 14-year investment experiment
MoneyWeek created a six-trust portfolio in June 2012 designed to be set-and-forget, covering different strategies with minimal changes. It has returned 248% in share price terms, or 9.2% per year.
Why investment trusts were chosen
Investment trusts offered long-term performance, flexibility, low costs, the ability to use gearing, and easy trading in and out of positions. They were picked to cover a range of different strategies.
Tinkering hurts returns half the time
Only six changes have been made in 14 years. About 50% of those changes generated worse returns than staying put, showing the value of leaving a portfolio alone.
How it compares to the indexes
The portfolio returned 9.2% per year versus 5.2% for the FTSE UK All-Share and 9.7% for the FTSE All-World. Dividends would have added further returns, though the average yield is around 2%.
Personal Assets: the defensive core
Personal Assets was chosen for absolute returns, wealth preservation, and a zero-discount policy. It remains in the portfolio today as the core defensive holding.
Scottish Mortgage: the growth engine
Scottish Mortgage provided the key growth equity exposure with a long run of market-beating returns. It remains a core holding and has been the portfolio's biggest winner with a 940% return since 2012.
Finsbury Growth & Income: quality global focus
Finsbury Growth & Income was picked for high-quality global businesses and disregard for benchmark constraints. Manager Nick Train had outperformed the FTSE All-Share over the previous ten years.
BH Macro: hedge fund access
BH Macro invested in the Brevan Howard Master Fund, a global macro hedge fund that outperformed during the 2008-2009 financial crisis. It was meant to provide returns inversely correlated with equities.
3i Infrastructure and RIT Capital Partners
3i Infrastructure was added as an absolute return income pick, preferring operating assets over contracts. RIT Capital Partners, chaired by Jacob Rothschild, offered diverse public, private, hedge fund and real assets.
First change: BH Macro to Caledonia
After just over a year, BH Macro was replaced by Caledonia Investments. Hedge funds proved expensive at 1.5% to 2% per annum, and returns didn't justify the cost. Caledonia has returned 124% versus BH Macro's 114%.
2015-2017: Infrastructure and Finsbury exits
3i Infrastructure was sold after management reset return targets. Finsbury Growth & Income was removed on valuation grounds after gaining 98% in five years. Both were replaced by Law Debenture and Temple Bar.
Law Debenture and Temple Bar selections
Law Debenture and Temple Bar were chosen for low costs and contrarian, UK-focused value strategies. Law Debenture traded at a 14% discount to NAV that has since disappeared. Switching to Law Debenture returned 200% versus 3i Infrastructure's 118%.
Temple Bar underperformance and exit
Temple Bar underperformed due to UK value stocks' weakness and manager Alastair Mundy's departure. It was sold in May 2020 at a 42% loss and replaced by Mid Wynd International.
Mid Wynd and JPMorgan Global Growth
Mid Wynd failed to meet expectations and was removed in April 2025 after a management change, replaced by JPMorgan Global Growth & Income. Switching between these trusts produced only 65% returns versus Finsbury's 142% since 2012.
RIT to AVI Global swap
RIT Capital Partners was sold in March 2023 after private equity and venture capital exposure grew from 24% to 45%. AVI Global was chosen for its global value focus, family holding companies, and Japanese equities exposure.
Personal Assets remains defensive anchor
Personal Assets is one of the best ultra-defensive plays, recently helped by gold exposure. Its returns lag inflation over five years but are ahead over ten years. Peers include Capital Gearing Trust and Ruffer.
JPMorgan Global Growth & Income case
JPMorgan Global Growth & Income is the largest trust in its sector with the best record and highest dividend yield at 3.9%. It pays dividends from both income and capital growth, targeting 4% of NAV annually.
Law Debenture's dual business model
Law Debenture has the best ten-year record of any UK equity income trust, partly because it's both an investment portfolio and professional services business. Services income covers about a third of the annual dividend requirement.
Scottish Mortgage's winning formula
Scottish Mortgage has returned 940% since 2012 through superior stock picking and conviction investing. It experienced a 56% peak-to-trough decline in 2021-2023, showing the volatility that comes with this style.
The takeaway
Frequent portfolio changes hurt returns about half the time; the best strategy is to pick quality trusts and leave them alone.
