Putting SIPP (Self-Invested Personal Pension) savings into investment trusts can be a savvy move. These products tend to offer diversified exposure to the stock market at a relatively low cost.
Here, I’m going to highlight three investment trusts that have excellent track records. I think they could be worth considering as part of a diversified SIPP portfolio.
Outstanding performance
First up is JP Morgan Global Growth & Income (LSE: JGGI). This is a global equity product that’s managed by banking powerhouse JP Morgan. Its aim is to combine the best ideas from the company’s global investment platform with an innovative dividend policy to deliver both gains and income.
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This trust has delivered outstanding performance of late. For the five-year period to the end of 2023, for example, its share price rose 112.7% (versus 73.9% for its benchmark).
What I like about this trust is that it’s not an ‘index hugger’. Within the top 10 holdings, there are quite a few stocks that won’t be found in the top 10 holdings of a global tracker fund, such as drinks giant Coca-Cola and chip manufacturing equipment maker ASML.
Of course, this stock-picking approach could backfire. However, I’m encouraged by the excellent long-term track record here. For the 10-year period to the end of 2023, the trust beat its benchmark by about 90%.
Ongoing charges are 0.5%.
10 professional stock pickers
Next, we have Alliance Trust (LSE: ATST). Now, this trust is a little different. That’s because its investment manager, Willis Towers Watson, has appointed 10 different professional investors – all with different styles – to pick shares for the portfolio.
This unique approach seems to be working. For the five years to the end of 2023, the trust delivered a total shareholder return of 79.3% versus 73.9% for the MSCI ACWI index.
I really like the portfolio here. At the end of 2023, the top 10 holdings included names such as Microsoft, Amazon, and Nvidia. In today’s digital world, these companies are just going from strength to strength.
It’s worth noting that this trust does have a large weighting to the US, which adds some risk.
I actually think this geographic tilt is smart though. Today, the US is home to many of the world’s most dominant businesses.
Ongoing charges are 0.61% a year.
A dividend hero
Finally, I want to highlight the Brunner Investment Trust (LSE: BUT).
This is a diversified product that invests in both UK and global equities and aims to provide growth and income.
This trust has a great track record on the growth front. For the five years to the end of 2023, its share price rose 93.5%.
It also has an excellent track record on the dividend front. Believe it or not, it has increased its dividend every year for over 50 years now (meaning it’s classified as a ‘Dividend Hero’).
It’s worth pointing out that this trust does have quite a bit of exposure to cyclical areas of the market like industrial and financial companies. This adds some risk.
Overall though, I think there’s a lot to like about it.
Ongoing charges are 0.63%.
