An update on Bacit – the investment trust that’s fighting cancer

Bacit is a cheap fund of funds that donates a portion of its profits to charities battling against cancer. And it’s doing rather well, says Merryn Somerset Webb.


A couple of years ago I suggestedthat you consider investing in Bacit. It's an investment trust that operates as a cheap fund of very good (and often hedge) funds with a charitable twist (it's cheap because the underlying managers offer their usually overpriced services for free) a bid to win the "battle against cancer" that's the BAC' in the name of the trust.

I followed up here on their issue of new shares, but I saw the management team again yesterday, and I just want to give those of you who invested (as I did) a quick update.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

The performance has been pretty much as the managers hoped. They said they were planning for low double-digit annual growth, and, since inception in October 2012, that is exactly what they have delivered in net asset value terms: the total return has been 30.2%, and the annualised return 11.5%.

They wanted the portfolio to be resilient, and it has been: in the 29 months since the launch, the MSCI World index has had eight down' months. In each of those months, Bacit has outperformed the market. If you add them all up, Bacit made a net gain of 3.6% over all of them (the MSCI lost 17.5% over them).

Advertisement - Article continues below

The fund is 97% invested (although, of course, many of the underlying funds hold cash) and is pleasantly skewed in directions we approve of the largest holding is the Polar Capital Japan Alpha Fund, and 35% of the overall assets are invested in Europe.

The shares are currently trading at a 2% discount to their net asset value, having been at something of a premium (over 7% at one point). This fund isn't in our official investment trust portfolio but I suspect next time we chuck one out it will be high up on our list of candidates to fill the gap.




Investment trusts: the Cinderella of investment arrives at the ball

Investors should look beyond the market noise of a single year and examine the bigger picture. Max King explains what we can learn from 25 years of in…
8 Jan 2020
Stock markets

Seven investment trusts to make your investments go global

The outlook for equities remains encouraging. An investment trust with an international remit will help you profit.
23 Jul 2019
Share tips

Give these 19 investment trusts a chance

Investors should spare a thought for these 19 out-of-favour investment trusts, says David Stevenson.
2 Jul 2019
Investments trusts

What makes investment trusts so special

MoneyWeek likes investment trusts. We write about them every week. However, now might be a good time to remember what it is that makes them special.
13 Jun 2019

Most Popular


Currency Corner: how high can the pound go against the euro in 2020?

In the month in which we should finally leave the European Union, Dominic Frisby takes a look at the pound vs the euro and asks just how high sterling…
13 Jan 2020

Where will markets be in 2030? Here are 20 forecasts for the 2020s

A lot has changed in the last ten years – stockmarkets soared, technology transformed our lives and politics has changed beyond measure. Here, Dominic…
14 Jan 2020
Personal finance

How much the state pension will rise by this year

While Boris Johnson promised to hold a full budget within 100 days of his election victory, many of the details of next year’s state pension increases…
10 Jan 2020

Money Minute Wednesday 15 January: UK inflation and house prices

In today’s Money Minute, we look ahead to the latest UK inflation and house price figures, plus we have Germany’s GDP data for 2019.
15 Jan 2020