Kepler Trust Intelligence, a digital publication covering investment companies from Kepler Partners, has published its list of the top investment trusts for 2025.
As investors consider the top stocks and funds to add to their portfolio for the new year, Kepler’s research – based on a proprietary, quantitative rating system – can help investors select the top investment trusts that demonstrate attractive and consistent performance characteristics over the long-term. The ratings consider performance over a five-year period, giving a detailed analysis that takes into account risk, the area of investment, fund objectives, and performance against a benchmark.
Thomas McMahon, head of investment companies research at Kepler Partners, said: “The investment trust sector tends to attract the best managers; the structure gives managers plenty of flexibility to generate alpha, while the closed-ended nature means the management contracts are highly prized by fund groups."
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Kepler groups the top investment trusts into three categories: growth rated funds, income rated funds, and alternative income rated funds. The latter of these looks at relevant sectors for trusts that have managed to deliver a flat or stable net asset value (NAV) along with dividend growth over the past five years.
“Our ratings reward the outstanding performers in three key categories and are designed to recognise those managers who have done particularly well to generate outperformance and mitigate the market risk during a highly volatile period over the past five years,” said McMahon.
The top growth investment trusts
Kepler’s list of the top growth rated funds consists of:
| Investment trusts | Growth / Value score (5 to -5) | Quality score (10 to 0) |
|---|---|---|
| Pershing Square Holdings | N/A | N/A |
| Ashoka India Equity Investment | 5.5 | 4.4 |
| Pacific Assets | 3.3 | 6.1 |
| Schroder Asian Total Return Inv. Company | 2.1 | 5.3 |
| Odyssean Investment Trust | 1.8 | 0.7 |
| CQS Natural Resources G&I | 1.5 | 5.3 |
| Fidelity European Trust | 1.3 | 6.3 |
| Pacific Horizon | 1.2 | 4.8 |
| AVI Japan Opportunity | 0.4 | 9.0 |
| Henderson European Trust | 0.4 | 6.1 |
| Invesco Global Equity Income Trust | 0.2 | 4.6 |
| Vietnam Enterprise | -0.6 | 2.4 |
| The European Smaller Companies Trust | -1.1 | 7.4 |
| JPMorgan American | -1.2 | 5.1 |
| Vietnam Holding | -1.2 | 3.2 |
| BlackRock Frontiers | -1.3 | 5.0 |
| BlackRock Energy and Resources Inc | -1.3 | 5.5 |
| Schroder Japan Trust | -1.4 | 6.8 |
| Strategic Equity Capital | -1.6 | 9.8 |
| Fidelity China Special Situations | -3.0 | 7.4 |
Source: Morningstar, Kepler calculations via Kepler Trust Intelligence; NB Pershing Square does not report portfolio data
AVI Japan Opportunity (LON:AJOT) and Vietnam Enterprise Investments (LON:VEIL) are new additions to this list.
CQS Natural Resources (LON:CYN) and the European Smaller Companies Trust (LON:ESCT) are among seven investment trusts at the centre of a takeover attempt by New York hedge fund Saba Capital.
Kepler drew attention to the performance of Fidelity China Special Situations (LON:FCSS), which hit the criteria for inclusion in the list despite challenging conditions in China, where its investments are focused.
“FCSS has done very well at limiting its exposure to the Chinese market’s downside and capturing the upside, and this has contributed to positive five-year performance while the Chinese market is down,” wrote McMahon.
The top income investment trusts
The trusts that Kepler assigned an income rating to were:
| Investment trusts | Growth / Value score (5 to -5) | Quality score (10 to 0) |
|---|---|---|
| Montanaro UK Smaller Companies | 2.5 | 6.3 |
| Utilico Emerging Markets | 1.7 | 5.2 |
| JPMorgan UK Small Cap Growth & Income | 0.8 | 8.0 |
| CC Japan Income & Growth | 0.8 | 6.0 |
| BlackRock Smaller Companies | 0.3 | 8.0 |
| Scottish American | 0.3 | 5.5 |
| Templeton Emerging Mkts Invmt Tr | -0.3 | 5.3 |
| JPMorgan Global Growth & Income | -0.3 | 3.5 |
| JPMorgan European Growth & Income | -0.7 | 6.0 |
| Henderson Smaller Companies | -1.8 | 7.4 |
| Invesco Asia | -1.9 | 6.2 |
| Diverse Income Trust | -2.0 | 6.3 |
| Law Debenture Corporation | -2.3 | 5.3 |
| abrdn Asian Income Fund | -2.5 | 5.6 |
| TR Property | -2.7 | 9.3 |
| Henderson Opportunities | -2.7 | 5.5 |
| Schroder Oriental Income | -2.8 | 7.0 |
| BlackRock World Mining Trust | -3.2 | 6.4 |
| Aberforth Smaller Companies | -3.5 | 5.1 |
| Fidelity Special Values | -3.9 | 6.3 |
Source: Morningstar, Kepler calculations via Kepler Trust Intelligence
“It is notable to see Aberforth Smaller Companies (LON:ASL) win a rating this year,” said McMahon. “ASL is one of the few unabashedly ‘value’ equity strategies left in the investment trust sector, and has performed extremely well post-pandemic.”
Henderson Opportunities (LON:HOT) is another of the trusts being targeted by Saba.
The top alternative income investment trusts
Finally, Kepler assigned the following trusts an alternative income rating:
| Trust | Association of Investment Companies (AIC) Sector | Yield (%) |
|---|---|---|
| Foresight Environmental Infra | Renewable Energy Infrastructure | 10.7 |
| Foresight Solar | Renewable Energy Infrastructure | 10.4 |
| Bluefield Solar Income Fund | Renewable Energy Infrastructure | 9.5 |
| Renewables Infrastructure Grp | Renewable Energy Infrastructure | 8.7 |
| CVC Income & Growth GBP | Debt - Loans & Bonds | 8.1 |
| Greencoat UK Wind | Renewable Energy Infrastructure | 7.8 |
| BBGI Global Infrastructure | Infrastructure | 6.9 |
| Ecofin Global Utilities & Infra | Infrastructure Securities | 4.7 |
| 3i Infrastructure | Infrastructure | 4.0 |
Source: Morningstar via Kepler Trust Intelligence
“For the first time, the number of Alternative Income rated funds has fallen,” said McMahon. He attributed the fall (from 14 last year to nine this year) to the impact of an interest rate shock on the valuations of unlisted portfolios, financing costs and net cash yields.
“On the other hand, stalwarts and early movers Greencoat UK Wind (UKW), Renewables Infrastructure Group (TRIG) and BBGI Global Infrastructure (BBGI) have navigated through the turmoil to retain their ratings in 2025,” said McMahon.
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