Seraphim Space Investment Trust was the best-performing investment trust in October 2025, with a 19.49% share price growth. The biotechnology sector has grown by 62% since April, outperforming the Morningstar Global Biotechnology Index by 45 percentage points. Seven trusts saw share price growth above 10% in October.

Ben Yearsley from Fairview Investing notes a resurgence of interest in biotech due to recent deals and increased drug trials. The biotechnology category has grown 70% since April, highlighting the sector’s potential. Big Pharma’s cash reserves could lead to more deals in the near future.

Investors should focus on long-term returns when evaluating investment trusts, but short-term returns can provide insights into strategies. Over 200 trusts saw positive returns in October, with seven rising by double digits. Gold-rated trusts like Polar Capital Technology and JPMorgan Emerging Markets saw a 9% increase.

The five best-performing investment trusts in October were Seraphim Space Investment, Biotech Growth, RTW Biotech Opportunities, Fidelity Japan, and International Biotechnology. Seraphim Space Investment rose 19.49%, while Biotech Growth and RTW Biotech Opportunities both saw share price growth above 17%.

The worst-performing trusts in October included Riverstone Energy and Scottish American. Investment trusts are closed-end funds that trade on the London Stock Exchange. They provide exposure to illiquid assets and can use gearing to enhance returns. Trusts trade at a discount or premium to their net asset value (NAV).

Read more at Morningstar: The Best-Performing Investment Trusts in October 2025