Trust Watch: Mining trust rally broadens beyond pure gold plays

Mining trusts topped the best-performing table again this week as commodity markets continue to thrive.

Funds in the Commodities & Natural Resources sector soared last year too, climbing 61.5% throughout 2025, yet pure-gold players stormed ahead by a wide margin. So far this year, the beneficiaries have been far broader.

Elsewhere, India trusts carried their poor performance into the new year, while 3i Group (III) received a much-needed uplift.

The average investment trust discount narrowed to 12.1% throughout the week from 12.6% the week prior and a one-year average of 13.9%.

To recap, the Z-scores in some tables are a measure used by analysts to put discounts and premiums – when investment company shares trade below or above net asset value (NAV) – into the context of the previous 12 months. Essentially, they highlight when an investment company trades significantly outside its normal one-year range.

An investment company with a Z-score of -2 or lower is considered ‘cheap’, while a score of 2 or more is viewed as ‘expensive’.

Next: Seraphim shows no signs of slowing

Source: Morningstar 15/01/26

Seraphim shows no signs of slowing

Seraphim Space’s (SSIT) impressive rally throughout 2025 has continued into the new year, with shares in the £346m trust soaring 19.3% over the past week.

Optimistic investors who took a punt on Mark Boggett’s SpaceTech trust when it was trading on a 46.2% discount at the beginning of last year will be laughing all their way to the bank after enjoying a 120.5% uplift over 2025 – the third-highest return of any investment trust over the period.

This strong performance was reflected in a sharp re-rating of the discount, which has now swung to an impressive premium of 26.7% as of yesterday.

It was another strong week for mining trusts too, which continued to climb as geopolitical tensions showed no signs of easing.

CQS Natural Resources (CYN) was the biggest beneficiary of rising commodity prices, with shares up 8.9%.

Last week’s top performer – BlackRock World Mining (BRWM) – followed closely behind with a 7.8% uplift over the past seven days, while stablemate BlackRock Energy and Resources Income (BERI) shadowed with a 6.1% gain.

The best performing investment trust of 2025, Golden Prospect Precious Metal (GPM), also made it into the top 10 as shares rose 5.7%.

This £97m trust managed by Rob Crayfourd and Keith Watson was the standout winner of its sector last year, soaring 164.7% versus an average return of 61.5% from its Commodities & Natural Resources peer group.

The performance of mining trusts so far this year, however, seems far broader than a pure gold play.

It was also a strong week for Herald (HRI), which climbed 7.1% in the days following its 100% tender announcement.

The £1.2bn small-cap technology trust managed by Katie Potts is attempting to see off ‘short-term shareholders’ such as Saba Capital, which owns around 30% of its shares.

Impax Environmental Markets (IEM) made a very similar move this morning, proposing its own 100% tender to remove the Boaz Weinstein-led hedge fund from its share register – though chair Glen Suarez said the close timings were entirely coincidental.

Trusts investing in Japanese equities also thrived this week after the Nikkei 225 index reached an all-time high, underpinned by expectations that prime minister Sanae Takaichi will soon call an early election.

Shares in CC Japan Income & Growth (CCJI) were up 7.5% throughout the week, followed by JPMorgan Japanese (JFJ) at 5.6%.

Next: India’s woes continue into 2026

Source: Morningstar 15/01/26

India’s woes continue into 2026

Shares in Life Science Reit (LABS) slumped 5.1% throughout the week as it continues to seek buyers for its assets.

The £131m property trust made the decision to wind-down in September after rejecting several low-ball non-binding offers.

Saba Capital was one of the shareholders calling for action, who’s ownership of the Reit went from 10.9% to 13.2% yesterday.

All four Indian equity trusts also dropped this week as the region continues to suffer into 2026. The average constituent in the small India/Indian Subcontinent sector was down 6.9% last year after a prolonged period of strong performance.

Shares in Ashoka India Equity (AIE) fell the furthest this week, down 4.2%, followed by a 2.5% loss by India Capital Growth (IGC).

Fairing marginally better was abrdn New India (ANII), down 2.1%, and JPMorgan India Growth & Income (JIGI) with a 2% decline.

Shares in Onward Opportunities (ONWD) were also down 2% throughout the week despite the fledgling trust’s net asset value (NAV) hitting a record high.

Founding manager Laurence Hulse told Citywire that the young UK smaller companies trust – which has yet to reach the three-year mark – is beginning to attract major institutional investors to its register, such as Rathbones, Charles Stanley, Hawksmoor, and Callanish Capital.

Next: 3i recovery

Source: Morningstar 15/01/26

3i recovery

3i Group remains one of the cheapest trusts versus its history, but received a much-needed recovery this week.

It traded on a 10.9% premium last week – far below its 47.8% average over the past year – but lifted to 17.6% over the following seven days.

The £30.1bn private equity giant fell sharply in November after chief executive Simon Borrows raised concerns over the continued strength of its top holding Action, where it has languished ever since.

However, investors may now be thinking that the sell-off has been overdone, eager to buy 3i’s shares on the cheap. Its price was up 6.1% throughout the week as markets began eyeing the company again.

Richard Staveley’s Rockwood Strategic (RKW) also dipped to a rare discount of 0.8% this week, having enjoyed an average premium of 1.5% over the past year.

The change may be in relation to a block listing of 2,189,832 ordinary shares of 5 pence each on Tuesday.

Despite a strong start to the year alongside its fellow mining trusts, Geiger Counter (GCL) also finds itself trading at historical lows.

Its share price was up 7% this week as commodity markets – including the uranium assets it specialises in – continued to rise, yet its discount widened to 15%. This is in comparison to a one-year average of 8.5%.

Next: Baker Steel catches up

Source: Morningstar 15/01/26

Baker Steel catches up

Unsurprisingly, Seraphim Space is the most expensive trust relative to its history given its colossal change in fortunes over the past year.

BlackRock Energy and Resources and BlackRock Latin American are also looking on the pricier end as they continue to ride the upward cycle in commodities.

The discount on fellow mining trust Baker Steel Resources (BSRT) is far wider than its Blackrock neighbours, who each sit around 2% below their NAVs.

It is the most heavily discounted Commodities & Natural Resources trust by some margin at 26.4% – compared to a 4.7% average amongst its peers – but it has narrowed significantly recently from a one-year average of 37.5%.

The £91m trust managed by Trevor Steel may have lagged its peers in this regard due to its higher exposure to early-stage and private natural resources companies, but could narrow the distance if the mining rally persists and broadens further.