With the four-week anniversary of President Trump’s “Liberation Day” announcements coming up tomorrow, the Association of Investment Companies (AIC) has published a list of the investment trust sectors that have performed the best and worst in the wake of those announcements.
The average investment trust returned 1.8% from 2 April, the date of the announcements, to 25 April. This was boosted by strong performances from trusts focused on private equity, Japan and property, while those investing in China, Asia and North America saw negative returns during the period (see full table below).
Nick Britton, Research Director of the Association of Investment Companies (AIC), said: “President Trump’s announcements on 2 April and his subsequent flip-flopping sent stock markets into a spin, but four weeks later some winners and losers are emerging. Winners include interest rate sensitive sectors, such as property and infrastructure, which would benefit from rates coming down faster than expected to soothe a troubled economy. UK equities have also done relatively well, as the UK is perceived as being less affected by the tariffs, and Japanese equities have also been resilient. Meanwhile, the stock markets of the trade war’s major players – the US and China – have both suffered.
“The differing fortunes of investment trust sectors since Liberation Day underlines the importance of having a diversified portfolio. Investors would be well advised to stay calm, stick to their plans and take a long-term view while the tariff war rages on.”
Performance of AIC sectors since Liberation Day (2 April)
| AIC sector | Share price total return (%) | |||
| Since 2 April | Year to date | Last 5 years | Last 10 years | |
| Average investment trust | 1.8 | 0.2 | 74.1 | 157.3 |
| Private Equity | 11.1 | 11.8 | 341.3 | 595.1 |
| Japanese Smaller Companies | 5.5 | 4.8 | 13.4 | 44.3 |
| Hedge Funds | 4.9 | -0.9 | 50.1 | 82.5 |
| Property – UK Commercial | 3.7 | 10.1 | 17.5 | 32.5 |
| Renewable Energy Infrastructure | 3.3 | -1.8 | -5.7 | 54.6 |
| UK All Companies | 2.9 | 1.4 | 63.6 | 94.9 |
| Property – UK Logistics | 2.8 | 14.2 | 50.3 | n/a |
| Property – UK Residential | 2.2 | 7.6 | 32.3 | n/a |
| Infrastructure | 2.0 | 0.7 | 11.5 | 68.3 |
| Japan | 1.6 | 1.1 | 38.0 | 93.9 |
| Property – Europe | 1.5 | 0.1 | -11.8 | n/a |
| UK Equity Income | 1.3 | 4.2 | 73.7 | 79.8 |
| European Smaller Companies | 0.9 | 7.8 | 84.3 | 137.7 |
| India/Indian Subcontinent | 0.9 | -8.0 | 132.7 | 108.4 |
| Europe | 0.7 | 9.2 | 62.7 | 116.3 |
| UK Smaller Companies | 0.4 | -7.3 | 41.1 | 73.0 |
| Commodities & Natural Resources | -0.8 | -2.1 | 137.9 | 60.1 |
| Debt – Direct Lending | -0.8 | 0.2 | 41.2 | n/a |
| Debt – Loans & Bonds | -1.1 | 0.2 | 62.6 | 50.8 |
| Global Smaller Companies | -1.1 | -10.3 | 24.8 | 101.5 |
| Property – Debt | -1.2 | -0.9 | 34.5 | 30.1 |
| Biotechnology & Healthcare | -1.2 | -10.9 | -17.6 | 31.7 |
| Flexible Investment | -1.4 | -0.4 | 36.9 | 63.8 |
| Growth Capital | -1.6 | -10.7 | -25.8 | n/a |
| Technology & Technology Innovation | -1.7 | -16.5 | 75.0 | n/a |
| Global Equity Income | -1.9 | -3.6 | 72.5 | 125.4 |
| Global Emerging Markets | -2.3 | -1.0 | 38.3 | 69.0 |
| Asia Pacific Smaller Companies | -2.5 | -4.2 | 90.9 | 96.0 |
| Debt – Structured Finance | -2.6 | 3.6 | 109.0 | 85.9 |
| Global | -3.4 | -6.8 | 55.8 | 187.6 |
| Asia Pacific Equity Income | -4.2 | -5.0 | 41.4 | 70.6 |
| Asia Pacific | -4.6 | -7.5 | 47.8 | 103.7 |
| Leasing | -4.6 | 0.0 | 163.0 | n/a |
| North America | -6.2 | -10.8 | 119.4 | 206.9 |
| Country Specialist | -8.8 | -14.4 | 48.9 | 161.3 |
| China / Greater China | -9.8 | 6.3 | 5.7 | 54.2 |
Source: theaic.co.uk / Morningstar. All share price returns to market close on 25 April. Returns since 2 April are from London market close on 2 April to market close on 25 April. Excludes VCTs. “n/a” indicates performance history is shorter than stated period.
The best performing investment trust since Liberation Day is private equity giant 3i Group, which has enjoyed a 15.4% return. This is followed by Urban Logistics REIT in the Property – UK Logistics sector, which has recently received a possible offer from LondonMetric Property, DP Aircraft I in the Leasing sector, and Bluefield Solar Income Fund in the Renewable Energy Infrastructure sector. A table of the best performing investment trusts since Liberation Day can be found below.
Best performing investment trusts since Liberation Day (2 April)
| Investment trust | AIC sector | Share price total return (%) | |||
| Since 2 April | Year to date | Last 5 years | Last 10 years | ||
| 3i Group | Private Equity | 15.4 | 18.1 | 567.2 | 1,068.7 |
| Urban Logistics REIT* | Property – UK Logistics | 13.0 | 42.2 | 43.1 | n/a |
| DP Aircraft I | Leasing | 11.9 | 95.8 | -51.0 | -82.7 |
| Bluefield Solar Income Fund | Renewable Energy Infrastructure | 11.0 | 8.2 | 8.1 | 75.9 |
| Social Housing REIT | Property – UK Residential | 10.3 | 17.4 | -2.8 | n/a |
| Nippon Active Value Fund | Japanese Smaller Companies | 9.2 | 7.9 | 112.9 | n/a |
| Downing Renewables & Infrastructure | Renewable Energy Infrastructure | 9.0 | 12.3 | n/a | n/a |
| Harmony Energy Income Trust* | Renewable Energy Infrastructure | 8.7 | 47.5 | n/a | n/a |
| Athelney Trust | UK Smaller Companies | 8.6 | -3.8 | 17.7 | 27.2 |
| JPMorgan Emerging Europe, Middle East & Africa | Global Emerging Markets | 8.3 | 29.3 | -45.0 | 0.0 |
| Gresham House Energy Storage | Renewable Energy Infrastructure | 7.9 | 51.6 | -11.2 | n/a |
| Schroder Real Estate | Property – UK Commercial | 7.9 | 7.2 | 76.2 | 47.7 |
| Target Healthcare REIT | Property – UK Healthcare | 7.8 | 20.3 | 27.5 | 72.7 |
| BlackRock Latin American | Latin America | 7.2 | 19.1 | 64.6 | 34.5 |
| BH Macro GBP | Hedge Funds | 6.3 | -1.7 | 20.5 | 90.4 |
| Syncona | Biotechnology & Healthcare | 5.9 | -11.9 | -54.1 | -18.6 |
| Regional REIT | Property – UK Commercial | 5.6 | 3.7 | -70.0 | n/a |
| Hansa Investment Company Class A shares | Flexible Investment | 5.2 | -4.1 | 62.0 | 56.1 |
| Aurora UK Alpha | UK All Companies | 5.0 | 5.5 | 66.0 | 85.6 |
| Merchants Trust | UK Equity Income | 4.9 | 0.7 | 91.9 | 89.0 |
| TR Property Investment Trust | Property Securities | 4.7 | -0.8 | 20.4 | 44.1 |
| Octopus Renewables Infrastructure Trust | Renewable Energy Infrastructure | 4.7 | 0.0 | -18.4 | n/a |
| CT Private Equity Trust | Private Equity | 4.6 | -1.1 | 77.6 | 243.1 |
| Mercantile Investment Trust | UK All Companies | 4.5 | -0.3 | 50.3 | 98.8 |
| Schroder BSC Social Impact | Flexible Investment | 4.4 | -6.5 | n/a | n/a |
| Alternative Income REIT | Property – UK Commercial | 4.3 | 2.7 | 138.9 | n/a |
| HICL Infrastructure | Infrastructure | 3.9 | 0.0 | -2.4 | 27.6 |
| US Solar Fund | Renewable Energy Infrastructure | 3.8 | -18.2 | -50.3 | n/a |
| International Public Partnerships | Infrastructure | 3.7 | -3.8 | -1.4 | 35.4 |
| Majedie Investments | Flexible Investment | 3.6 | 0.0 | 50.0 | 44.0 |
Source: theaic.co.uk / Morningstar. All share price returns to market close on 25 April. Returns since 2 April are from London market close on 2 April to market close on 25 April. GBP share classes only. Excludes VCTs and companies in realisation. “n/a” indicates performance history is shorter than stated period. * These companies have been subject to offers since 2 April.
