Lessons from investment trust winners and losers of 2025

Investors searching for safe havens in volatile times have made natural resources investment trusts the best-performing quoted funds over the year so far.

Trusts in the resources sector, which have typically benefited from the rise in the price of gold, gained 43.9% on average in the first 11 months of the year, while China trusts came a close second with a 42.8% rise in their average share price on a ‘total return’ basis. Other emerging markets and technology also performed well for investment trust savers, according to the Association of Investment Companies, the trade body for trusts.

Precious metals have performed strongly this year – gold and silver have repeatedly reached new record highs – although other commodities such as oil and agricultural products have performed less well. The FTSE/CoreCommodity CRB Excess Return Index, a widely followed commodity benchmark, is broadly flat over the year.

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The natural resources sector’s best performer, the Golden Prospect Precious Metals trust, which invests largely in miners of precious metals, has risen by 156% over the year so far. The BlackRock World Mining Trust, a much larger fund, has gained 52.3%.

Investors who shunned safe havens, by contrast, and were prepared to risk investing in China at a time when many declared it ‘uninvestable’, have been rewarded by a 42.8% gain in that sector’s investment trusts over the first 11 months of the year. Fidelity China Special Situations, for example, has risen by 45.2% so far this year. Some factors that had caused anxiety in investors’ minds about China have receded, such as the property crash and a regulatory crackdown on tech companies, while the country may also seem more stable relative to alternative homes for money such as the US under the current administration and a Europe grappling to deal with war on its borders.

Emerging markets more broadly have also rewarded investment trust savers. The third best-performing sector to the end of November was Global Emerging Markets with a 33.8% average total return. JPMorgan Emerging Europe, Middle East & Africa Securities, for example, has risen by a third so far this year. In addition to the reasons for renewed interest in China mentioned above, emerging markets generally benefit from a weak dollar; an index that measures the US currency against leading rivals has fallen from about 110 in mid-January to 99.4 at the time of writing.

The next best performer among investment trust sectors is Growth Capital, which includes trusts that invest in fast-growing, often unlisted firms. One example is Chrysalis Investments, whose holdings include Klarna, the buy now pay later company, and Starling Bank. Technology trusts also performed well, producing a 28.3% rise as the AI boom continued. One tech trust, Polar Capital Technology, has gained 32.8% this year.

Other trusts to perform well were those in the Biotechnology & Healthcare sector (21.5% gain), as the industry started to recover from a period in the doldrums thanks in part to the success of anti-obesity drugs, and those that invest in Europe. The continent was represented by two sectors in the top 10: Europe (21.4% rise) and European Smaller Companies (26.8%). Like emerging markets, Europe benefited from some rotation away from America as investors sought to rebalance portfolios that had become heavily exposed to the US or took fright at the tariff wars.

The top 10 investment trust sectors of 2025 so far

* 11 months to 30/11/25, total return basis ** Excluding venture capital trusts

Past performance is not a reliable indicator of future returns

Investment trusts in Fidelity’s Select 50

There are currently three investment trusts on our Select 50 list of recommended funds: International Public Partnerships, Schroder Japan Trust and Schroder Oriental Income Fund.

International Public Partnerships owns infrastructure assets and appeals to income investors thanks to its 5.9% dividend yield (variable and not guaranteed), while Schroder Japan is more geared to capital growth but still yields 3.5%. Schroder Oriental Income is of course an income-focused fund although it yields an identical 3.5%. It invests in companies across Asia in countries such as China, India and Australia.

You can read why we like each Select 50 fund by clicking on the ‘Our view’ tab on its web page. For example, our view on Schroder Oriental Income can be found here.

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Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing, please read the relevant key information document which contains important information about each investment trust. The shares in these investment trusts are listed on the London Stock Exchange and their price is affected by supply and demand. Investment trusts can gain additional exposure to the market, known as gearing, potentially increasing volatility. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.