From Morningstar: 2025-04-02 05:23:00

In the first quarter of 2025, the top-performing investment trust saw a total return of over 16%, while the worst performer experienced a loss of 55%. Three UK-listed trusts, including Baillie Gifford China Growth, Fidelity China Special, and JPMorgan China Growth & Income, returned double digits due to the rebound in the China stock market.

Despite previous concerns about investing in China, the market has shown signs of recovery with the Morningstar China Index growing 33% in 2024 and 12% in the first three months of 2025. China has reasserted its tech capabilities and aims to boost consumer spending to mitigate the impact of US tariffs.

BlackRock Latin American and JPMorgan European Growth & Income were among the top performers in the Latin America and Europe categories, respectively. However, technology and AIM trusts have struggled in 2025, with British & American and Polar Capital Technology being among the worst performers due to market corrections and economic slowdowns.

Investment trusts focused on UK large-cap stocks have had a successful year so far, while those invested in UK small-cap equities and AIM have faced challenges. Unicorn AIM VCT is one of the worst performers in the first quarter, down 13.01%, but remains optimistic about long-term growth opportunities within the AIM market.

Calculating investment trust performance can be done through daily share price performance or net asset value (NAV). Most trusts trade at a discount to NAV, with Baillie Gifford China Growth seeing a gain of 16% in NAV terms and over 30% in share price terms in the first quarter of 2025. Morningstar’s total return calculation includes changes in monthly NAV, reinvesting all income and capital gains. 1. The stock market saw a significant drop today, with the S&P 500 falling by 3%. This is the largest single-day decline in over a year, as investors grow concerned about rising inflation and interest rates.

2. The latest jobs report showed that the unemployment rate has dropped to 4.8%, the lowest it’s been in over a decade. This is due to a surge in hiring across various sectors, including hospitality, retail, and healthcare.

3. A new study revealed that 70% of Americans have experienced financial stress in the past year. Factors contributing to this stress include job loss, medical bills, and lack of emergency savings. The study also found that millennials are the most financially stressed generation.

4. In international news, tensions are escalating between Russia and Ukraine as Russia continues to amass troops along the border. The U.S. and NATO have expressed concern over this military buildup, with fears of a potential invasion of Ukraine.

5. The FDA has approved a new drug for the treatment of Alzheimer’s disease, making it the first new treatment for the disease in nearly 20 years. The drug has shown promising results in clinical trials, with the potential to slow the progression of the disease in patients.



Read more at Morningstar: Best- and Worst-Performing Investment Trusts in Q1 2025