Investment trust 2025 review: another record year for corporate activity

2025 saw a frenzy of corporate activity, with 27 mergers, acquisitions and liquidations completed in the year, surpassing the previous record of 24 set in 2024.

Share buybacks soared 36% to £10.22bn compared to £7.51bn in 2024, which was the previous record. The sectors with the most buybacks were Global (£2.87bn), Biotechnology & Healthcare (£748m) and UK Smaller Companies (£607m).

Discounts narrowed over the year, with the average investment trust discount excluding 3i standing at 12.5% on 31 December, compared to 15.0% on the last day of 2024.

The total assets of investment trusts fell by just over £3bn during the year, finishing December at £265.51bn compared to £268.62bn at the end of 2024. Dividends paid in 2025 totalled £6.41bn.

Fundraising by existing investment trusts totalled £530m, led by trusts in the Debt – Loans & Bonds sector which raised £206m. The trust that raised the most over the year was TwentyFour Income Fund in the Debt – Structured Finance sector, which raised £96m from investors. There was one IPO, Achilles Investment Company, which raised £54m.

During the year, a record 41 investment trusts changed their fees to benefit shareholders, compared to 32 in 2024 and 26 in 2023. The most common type of fee change was a reduction in base fee, applying to 30 trusts. This includes 18 cases where a trust switched its fee basis: for example, from a charge based on net assets to one based on the lower of net assets and market capitalisation.

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Last year investment trusts continued to reshape themselves to meet investors’ needs, with the pace of mergers, acquisitions and liquidations in the sector showing no sign of slowing. In addition, a record number of investment trusts changed their fees to benefit investors. This all demonstrates how investment trust boards are working hard to deliver value for their shareholders.”

See below for more detail on performance, mergers, manager changes, liquidations, acquisitions and secondary fundraising.

Performance in 2025

The average investment trust returned 12.1% in 2025, with the top performing sector being Commodities & Natural Resources with a return of 61.6%. The next best performing sector was China / Greater China returning 39.0% followed by Global Emerging Markets (37.2%), Growth Capital (36.5%) and Technology & Technology Innovation (30.3%)⁵.

Mergers in 2025

Five mergers were completed in 2025. A further merger between Invesco Global Equity Income Trust and Franklin Global Trust, with the former being the continuing company, is expected to complete early this year.

2025	Merged trusts	Continuing trust	AIC sector
Feb	Invesco Asia Trust / Asia Dragon Trust	Invesco Asia Dragon Trust	Asia Pacific Equity Income
May	JPMorgan Global Growth & Income / Henderson International Income	JPMorgan Global Growth & Income	Global Equity Income
Sep	Fidelity European Trust / Henderson European Trust	Fidelity European Trust	Europe
Oct	The European Smaller Companies Trust / European Assets	The European Smaller Companies Trust	European Smaller Companies
Nov	AVI Japan Opportunity Trust / Fidelity Japan	AVI Japan Opportunity Trust	Japanese Smaller Companies

Source: theaic.co.uk

Manager changes in 2025

Three investment trusts changed their manager during the year. In addition, Murray Income Trust has appointed Artemis Fund Managers as its new manager, replacing Aberdeen, a change expected to take effect in the first quarter of 2026.

2025	Investment trust (current name)	New management group	AIC sector	Previous management group
Jan	Social Housing REIT	Atrato Partners	Property – UK Residential	Triple Point Investment Management
Mar	Artemis UK Future Leaders	Artemis Fund Managers	UK Smaller Companies	Invesco Asset Management
Jul	Hydrogen Capital Growth	RWC Asset Management (Redwheel)	Renewable Energy Infrastructure	HydrogenOne Capital

Source: theaic.co.uk. Management group changes which result from a restructure, merger or acquisition at the management group level are not included.

Liquidations in 2025

There were 15 liquidations of investment trusts in 2025, the highest number of liquidations since 2016.

2025	Investment trust	Management group	AIC sector
Jan	Blackstone Loan Financing	Blackstone/GSO Loan Financing	Debt – Structured Finance
Jan	Doric Nimrod Air Two	Doric Partners	Leasing
Jan	Dunedin Enterprise	Dunedin	Private Equity
Feb	Downing Strategic Micro-Cap	Downing	UK Smaller Companies
Feb	Triple Point Energy Transition	Triple Point Investment Management	Renewable Energy Infrastructure
Mar	Menhaden Resource Efficiency	Menhaden Capital Management	Environmental
Mar	SVM UK Emerging Fund	River Global	Debt – Structured Finance
Mar	Henderson Opportunities	Janus Henderson Investors	UK All Companies
Mar	Jupiter Green	Jupiter Unit Trust Managers	Environmental
Mar	Keystone Positive Change	Baillie Gifford	Global
May	Miton UK MicroCap Trust	Miton Trust Managers	UK Smaller Companies
Oct	Middlefield Canadian Income	Middlefield International	North America
Dec	Premier Miton Global Renewables	Premier Miton	Infrastructure Securities
Dec	NB Distressed Debt	Neuberger Berman Europe	Debt – Loans & Bonds
Dec	Weiss Korea Opportunity	Weiss Asset Management	Country Specialist

Source: theaic.co.uk.

Acquisitions in 2025

Seven investment trusts were acquired in 2025. A further investment trust, PRS REIT, is in the process of being acquired by Waypoint Asset Management.

2025	Investment trust	Management group	AIC sector	Acquirer
May	Care REIT	Impact Health Partners	Property – UK Healthcare	CareTrust (a US REIT)
Jun	BBGI Global Infrastructure S.A.	BBGI Management	Infrastructure	BCI
Jun	Harmony Energy Income	Harmony Energy Advisors	Renewable Energy Infrastructure	PP Bidco (Foresight)
Jun	Urban Logistics REIT	Logistics Asset Management	Property – UK Logistics	LondonMetric Property
Sep	Apax Global Alpha	Apax Guernsey Managers	Private Equity	Janus Bidco
Oct	Warehouse REIT	Tilstone Partners	Property – UK Commercial	Wapping Bidco (Blackstone)
Nov	Downing Renewables & Infrastructure	Downing	Renewable Energy Infrastructure	Bagnall Energy

Source: theaic.co.uk.

Secondary fundraising in 2025

Fundraising by existing investment trusts, known as secondary fundraising, totalled £530m in 2025. This was down 37% on the total raised in 2024, which was £845m.

A table of the investment trusts that raised the most in secondary fundraising during 2025 can be found below.

Investment trust	AIC sector	Total secondary fundraising in 2025 (£m)
TwentyFour Income Fund	Debt – Structured Finance	95.62
Invesco Bond Income Plus	Debt – Loans & Bonds	59.42
Henderson Far East Income	Asia Pacific Equity Income	57.05
TwentyFour Select Monthly Income	Debt – Loans & Bonds	48.74
M&G Credit Income	Debt – Loans & Bonds	44.19

Source: theaic.co.uk. All fundraising is secondary fundraising. Closed issues admitted to trading only. Excludes VCTs and shares issued from treasury.