Follow the smart money with family trusts
How to invest alongside some of Britain’s most successful dynasties.
Families have used investment trusts to protect and grow their wealth for generations. And during that time, these family trusts have listed on the stock market and opened their doors to ordinary investors as well.
Indeed, some of the UK’s best known trusts include Witan (recently merged with Alliance Trust to form Alliance Witan), Brunner and RIT Capital Partners, all of which have their roots in managing family wealth. The newest “family” trust is Literacy Capital, floated on the stock market in 2021 by father and son Richard and Paul Pindar.
Nick Britton, Research Director of the Association of Investment Companies (AIC), said: “Several investment trusts started out as vehicles to manage family wealth, and some of those families still have significant shareholdings. Investment trusts have a structure which encourages long-term stewardship of capital, so they are well suited to managing family money across the generations. Because they are also listed companies, anyone can buy a share and have their money managed in the same way.”
Placing investment trusts at the heart of family wealth planning is also key to a new AIC campaign, ‘Futureproof your family’, which encourages people to consider using investment trusts to help secure their family’s future.
Investment trusts have a structure which encourages long-term stewardship of capital, so they are well suited to managing family money across the generations. Because they are also listed companies, anyone can buy a share and have their money managed in the same way.
Nick Britton, Research Director of the Association of Investment Companies (AIC)
The Association of Investment Companies (AIC) has compiled information on some of the most famous investment trusts with significant family shareholdings, together with comments from some of the trusts’ directors and managers.
Majedie Investments
| Floated | 1985 |
|---|---|
| Total assets | £171m |
| Share price total return (%) 1 year | 23.8% |
| Share price total return (%) 3 years | 49.5% |
| Share price total return (%) 5 years | 46.4% |
| Share price total return (%) 10 years | 74.0% |
Majedie Investments was established to manage the wealth of the Barlow family, which made its fortune in rubber plantations in Malaysia, one of which was named Majedie, from which the trust took its name. The family still owns about 50% of the trust’s shares and is represented on the board by William Barlow as a non-independent, non-executive director with a focus on investor engagement and marketing.
William Barlow, Non-Executive Director of Majedie Investments, said: “Collectively it is better for the family to be invested in one vehicle because we are stronger as a unit than we are as individuals. The investment trust structure works well because it provides liquidity and means every family member can manage their investment as they need to as individuals. Having said that, the family holding has barely changed for the last 30 years, which means people must be happy!
“My father and cousin were the last non-independent chairmen. The company has a rich 115-year history, and this has helped maintain the family bonds and interest in the trust. Majedie was established as an investment company to grow and preserve generational wealth through a long-term investment approach that compounds generational wealth and shareholder returns. Those values remain true today.
“As a result, the family remains very engaged, and its support was crucial in the appointment of Marylebone Partners as the new investment manager. In the same way that an institutional investor or wealth manager is able to, we have the opportunity as significant shareholders to hear from the investment manager once a year on strategy and underlying investments – and there’s always a good turnout at the AGM!”
Literacy Capital
| Floated | 2021 |
|---|---|
| Total assets | £312m |
| Share price total return (%) 1 year | -14.9% |
| Share price total return (%) 3 years | 32.7% |
| Share price total return (%) 5 years | n/a |
| Share price total return (%) 10 years | n/a |
Literacy Capital is an investment trust that focuses on UK-based private businesses. It was founded by Paul Pindar and his son Richard Pindar in 2017. It raised an initial £54m, which grew organically to £96m by the time the company listed on the stock exchange in June 2021. Since then, growth has accelerated, with net assets currently exceeding £300m. The trust is unique in that it contributes 0.5% of its net asset value each year to charitable foundations that work to improve literacy standards in the UK.
Richard Pindar, CEO of Literacy Capital, said: “The two family members actively involved with Literacy Capital have a combined shareholding of approximately 39%. Neither individual has sold a share since the company was set up or floated. Other family members not involved in the fund own around a further 8% of the shares.
“Two family members are on the board of Literacy Capital but neither has ever taken any salary for this role. Both are also members of the investment manager. Each works full time and exclusively on creating value within the listed trust, with strong alignment and incentive to do so given their shareholdings in the fund.
“Investment trusts work well full stop, for all investors, not just for family shareholders. Closed-ended funds have been shown to deliver better performance than open-ended funds for several reasons. An investment company or trust is also able to hold illiquid assets or private companies and can invest patiently for the long term. This is an approach and asset class that has been proven to deliver better performance for investors. Finally, the ability to recycle gains from the sale of assets without paying tax (capital gains or corporation tax), assuming these proceeds are retained within the company, is another benefit that becomes more valuable to all shareholders, including family members, as time passes.
“The features that Literacy Capital has as an investment trust have also been hugely positive for its charitable mission too. Its evergreen, permanent structure and strong performance have meant that the fund can give its charity partners comfort that it can provide consistent, growing and long-term support enabling them to plan accordingly.”
Caledonia Investments
| Floated | 1960 |
|---|---|
| Total assets | £3.01bn |
| Share price total return (%) 1 year | 17.3% |
| Share price total return (%) 3 years | 19.3% |
| Share price total return (%) 5 years | 43.3% |
| Share price total return (%) 10 years | 121.2% |
The company that became Caledonia Investments was acquired by the Cayzer family in 1951 and in 1955, the trust acquired the family’s interest in the British and Commonwealth Shipping Company, which was founded by the family in the late 1800s. It was listed on the London Stock Exchange in 1960 and remained a trading company before becoming a listed investment trust in 2003. The Cayzer family owns 49.64% of the company and is represented on the board.
Mat Masters, Chief Executive Officer of Caledonia Investments, said: “Caledonia’s heritage goes back to 1878, when it was founded as a shipping business by the Cayzer family. Over nearly 150 years, we have evolved into a diversified investment trust, but our core philosophy remains unchanged, and the ongoing support of the Cayzer family underpins Caledonia’s long-term approach to investing, with a disciplined process that aligns with shareholders’ interests.
“Caledonia is unique because it allows shareholders to invest alongside a family who take a multi-generational approach to wealth creation and preservation. Via our three investment pools – public companies, private capital and funds – we strategically allocate capital to high-quality companies and funds with excellent track records. Our long-term approach means shareholders can benefit from compounding returns over time within a robust risk framework.”
Brunner Investment Trust
| Floated | 1927 |
|---|---|
| Total assets | £654m |
| Share price total return (%) 1 year | 20.1% |
| Share price total return (%) 3 years | 42.1% |
| Share price total return (%) 5 years | 73.2% |
| Share price total return (%) 10 years | 226.5% |
The Brunner Investment Trust was established by the Brunner family almost a century ago, and members of the family still hold 28% of the shares.
Sir John Brunner, a chemical industrialist and politician, co-founded Brunner Mond & Co, the largest of four companies which came together to form ICI in 1926. The family’s interest in ICI was used the following year to establish The Brunner Investment Trust. John Brunner was a passionate campaigner, including for welfare reforms and free trade, and used his wealth for philanthropic purposes.
Jim Sharp, a non-executive director of the company, is connected to the Brunner family by marriage and continues the link between the board and the Brunner family.
The trust is an AIC dividend hero with a 53-year track record of consecutive annual dividend increases.
RIT Capital Partners
| Floated | 1988 |
|---|---|
| Total assets | £4.11bn |
| Share price total return (%) 1 year | 7.0% |
| Share price total return (%) 3 years | -20.6% |
| Share price total return (%) 5 years | 0.4% |
| Share price total return (%) 10 years | 54.5% |
RIT Capital Partners was founded by Jacob Rothschild and can trace its roots back to the Rothschild Investment Trust, which he chaired from 1971. It became a listed investment trust in 1988 and is managed by its wholly owned subsidiary, J Rothschild Capital Management. The Rothschild family is the largest shareholder with 22% of the shares, and is represented on the board by Jacob’s daughter Dame Hannah Rothschild DBE CBE, who is a non-executive director.
- ENDS -
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Notes to editors
- Source for data tables: theaic.co.uk / Morningstar (assets are as at 17/02/25, share price total return data is to 14/02/25).
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 308 members and the industry has total assets of approximately £274 billion.
- For more information about the AIC and investment trusts, visit the AIC’s website.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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