Past performance is not a guide to future performance.
By their nature, investment trusts are designed for long-term investing. This is a message that has been reinforced in the findings of the latest research from the Association of Investment Companies (AIC).
The AIC has found that 68 investment trusts would have made investors ISA millionaires if they had invested their full annual ISA allowance in the same trust each year between 1999 and 2025, with dividends reinvested. Over that period, a total investment of £346,560 could have grown into a seven‑figure, tax‑free portfolio.
The research highlights the power of consistency and long-term investing. To read more about the research please click here.
Janus Henderson investment trusts among the ISA millionaire makers
Six investment trusts managed by Janus Henderson Investors feature in this year’s AIC ISA millionaire list. Based on investing the full ISA allowance each year between 1999 and 2025, the following trusts would all have produced tax‑free portfolios worth more than £1 million:
- The European Smaller Companies Trust (ESCT) would have grown annual ISA contributions to £1,732,053, reflecting the long-term potential of investing in high-quality European smaller companies.
- The Bankers Investment Trust (BNKR), which invests in global equities, would have delivered a total ISA value of £1,218,940, highlighting the benefits of long-term global diversification.
- Lowland Investment Company (LWI), focused on UK equities, would have produced a total ISA value of £1,195,794 over the period.
- The North American Income Trust (NAIT) would have turned annual ISA investments into £1,150,721, demonstrating the compounding power of income-focused investing in North American markets.
- The Henderson Smaller Companies Investment Trust (HSL) would have generated £1,143,582, underlining the long-term opportunity available in UK smaller companies.
- The City of London Investment Trust (CTY), one of the UK’s longest‑established equity income trusts, would have produced a total ISA value of £1,083,755.
Together, these results underline the AIC’s findings that patient, long-term investing can transform regular ISA contributions into substantial wealth over time.
Why investment trusts suit long-term investors
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 investment trusts, please click here.
Find out more about the AIC’s ISA millionaire research here.
Capital
When referring to a portfolio, the capital reflects the net-asset value of a fund. More broadly, it can be used to refer to the financial value of an amount invested in a company or an investment portfolio.
Dividend
A variable discretionary payment made by a company to its shareholders.
Equity
A security representing ownership, typically listed on a stock exchange. ‘Equities’ as an asset class means investments in shares, as opposed to, for instance, bond. To have ‘equity’ in a company means to hold shares in that company and therefore have part ownership.
Gearing
Gearing is a measure of a company’s debt relative to its equity, showing how far its operations are funded by lenders versus shareholders. For investment trusts: The effect of borrowing money for investment purposes (financial gearing). The amount a company can ‘gear’ is the amount it can borrow in order to invest.
ISA
An Individual Savings Account (ISA) is a UK tax-free savings or investment account that allows individuals to shelter interest, income, or capital gains from tax.
Portfolio
A grouping of financial assets such as equities, bonds, commodities, properties, or cash. Also often called a ‘fund’.
Important information
Past performance does not predict future returns.
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), Tabula Investment Management Limited (reg. no. 11286661), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE 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).
Janus Henderson® and any other trademarks used herein are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.
Janus Henderson Fund Managers UK Limited was appointed as the AIFM of the North American Income Trust with effect from 1 August 2024. Prior to that date, the North American Income Trust’s AIFM was abrdn Fund Managers Limited and all information contained in this document should be considered accordingly.