Top-performing investment trusts: Europe leads the pack in H1

European small caps have been the best-performing investment trust sector so far this year, as investors move money out of the US. Can it continue?

Silhouette of a person balancing on a European Union flag
(Image credit: Westend61 via Getty Images)

It has been one of those years where decades happen in weeks, to misquote Lenin, and we are only halfway through 2025. From DeepSeek at the start of the year, to trade wars and an escalation in the Middle East more recently, there has been plenty to rattle markets.

Despite this, investment trust performance has been strong. The average trust (excluding venture capital trusts) is up 7% over the past six months in share price terms, according to the Association of Investment Companies (AIC).

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Top performing investment trust sectors, H1 2025

Sector

H1 2025

1 year

3 years

5 years

10 years

European Smaller Companies

24.41%

22.95%

53.44%

80.82%

174.32%

Property – UK Commercial

17.94%

22.29%

-15.73%

21.48%

46.00%

Europe

17.48%

7.11%

52.63%

57.39%

142.01%

China / Greater China

14.60%

25.07%

-10.93%

-6.27%

84.60%

UK All Companies

13.18%

17.24%

54.68%

70.85%

107.07%

Japan

12.28%

14.43%

42.10%

28.77%

124.36%

Private Equity

12.03%

27.30%

168.55%

291.77%

550.53%

UK Equity Income

11.62%

16.25%

36.69%

74.31%

97.21%

Debt – Structured Finance

11.42%

24.05%

54.14%

106.20%

106.42%

Global Emerging Markets

11.42%

15.09%

32.16%

34.20%

109.91%

Average investment trust ex VCTs

7.09%

12.48%

36.42%

64.72%

176.38%

Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.