Fantasy fund manager: relief as global markets bounce back
The May rally gave all our contestants a welcome boost.
There was a broad rebound in world markets in May following a bruising first four months of 2025, and that provided a welcome fillip for our fantasy fund manager portfolios. A temporary delay to Trump’s tariffs, apparent progress in trade talks between the US and EU, and improving consumer confidence provided a tailwind, with the US, Europe and UK all seeing healthy gains.
The US was the best performing developed market; the average investment trust in the North America sector was up by an impressive 9.1% in May, beating the S&P 500 index which rose by 6.2% in dollar terms.
The UK also performed well; the MSCI UK index gained 3.4%. But that was once again eclipsed by the average investment trust in the UK All Companies sector, which rose by 7.8%.
So how is our leaderboard looking?
Journalist | Portfolio gain (%) | Value of £10,000 |
|---|---|---|
| Rosie Murray-West | 8.30 | £10,830 |
| James Baxter-Derrington | -0.13 | £9,987 |
| Moira O'Neill | -1.45 | £9,855 |
| Kyle Caldwell | -2.08 | £9,792 |
| Cherry Reynard | -3.00 | £9,700 |
| Ian Cowie | -12.32 | £8,768 |
Source: theaic.co.uk / Morningstar. Share price total return from 31/12/24 to 31/05/25
Top portfolio returns
James Baxter-Derrington, the investment editor of the Daily Telegraph, saw the biggest gains in May, with his portfolio rising by 6.47% during the month. All four of his trust selections rose by more than 5%. He now sits in second place on the leaderboard, his portfolio down a mere 0.13% since the start of the competition: a satisfactory position given the turmoil that has rocked world markets this year.
Both Ian Cowie of The Sunday Times and freelance columnist Moira O’Neill saw their portfolios rise by 4.47%. Ian, however, is still in last place – which just goes to show how unpredictable markets can be over such short periods. Ian is one of the most successful DIY investors currently writing in the media today, yet his portfolio is down by 12.3% since the start of the year. It has been hit particularly hard by JP Morgan US Smaller Companies, which has drooped 18.49% this year, shattering high hopes for the sector when Trump came to power.
Top investment trusts
The best performing trust held by our contestants last month was Polar Capital Technology, which holds some of the biggest companies in the world. We know Mr Cowie owns this trust in his personal portfolio but alas it is not in his fantasy fund picks, so he failed to benefit from the immense 13.17% gain in May, leaving Moira O’Neill, who does hold it in her portfolio, to reap the rewards.
Another of Moira’s holdings, Henderson Smaller Companies, was also a strong performer, gaining 10.51%, showing active management can undercover some spectacular performers among smaller UK companies, despite the sector having been out of favour for some time. Perhaps the tide is turning? The trust’s discount has narrowed from 13% to 9% since the start of the competition.
James Baxter-Derrington’s holding in Mercantile Investment Trust, which leans towards smaller and mid cap companies, picked up steam in May, up 7.71%, while shares in Kyle Caldwell’s pick Fidelity Special Values, the UK-focused trust that specialises in finding undervalued or overlooked companies, shot up by 8.93% in May.
All of that said, it’s still Rosie Murray-West setting the pace with her 8.3% portfolio gain since the start of the year. Her portfolio rose 3.77% in May, with Canadian General Investments her best performing trust, up 7.20%, and Polar Capital Global Financials Trust close behind with a monthly return of 6.22%.
Well done to everybody for an impressive recovery. Let’s see whether June brings more gains or more pain!
Journalist | Investment Trust | AIC sector | Share price total return (%) 1 month to 31/05/25 | Share price total return (%) YTD to 31/05/25 | Value of holding as at 31/05/2025 |
|---|---|---|---|---|---|
| Rosie Murray-West | Brown Advisory US Smaller Companies | North American Smaller Companies | 4.70 | -12.50 | £2,188 |
| Canadian General Investments | North America | 7.20 | -8.22 | £2,295 | |
| Gresham House Energy Storage Fund | Renewable Energy Infrastructure | -3.06 | 44.88 | £3,622 | |
| Polar Capital Global Financials | Financials & Financial Innovation | 6.22 | 9.04 | £2,726 | |
| Total portfolio | 3.77 | 8.30 | £10,830 | ||
| James Baxter-Derrington | Chrysalis | Growth Capital | 5.93 | -7.41 | £2,315 |
| Fidelity China Special Situations | China / Greater China | 5.53 | 11.21 | £2,780 | |
| JP Morgan American | North America | 6.69 | -11.68 | £2,208 | |
| Mercantile Investment Trust | UK All Companies | 7.71 | 7.36 | £2,684 | |
| Total portfolio | 6.47 | -0.13 | £9,987 | ||
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| Moira O'Neill | City of London Investment Trust | UK Equity Income | 2.80 | 13.57 | £2,839 |
| Henderson Smaller Companies | UK Smaller Companies | 10.51 | 4.53 | £2,613 | |
| International Biotechnology Trust | Biotechnology & Healthcare | -8.62 | -17.60 | £2,060 | |
| Polar Capital Technology | Technology & Technology Innovation | 13.17 | -6.31 | £2,342 | |
| Total portfolio | 4.47 | -1.45 | £9,855 | ||
| Kyle Caldwell | Alliance Witan | Global | 5.19 | -3.26 | £2,418 |
| Fidelity Special Values | UK All Companies | 8.93 | 15.02 | £2,875 | |
| Personal Assets Trust | Flexible Investment | 0.59 | 3.71 | £2,593 | |
| RTW Biotech Opportunities | Biotechnology & Healthcare | -3.89 | -23.77 | £1,906 | |
| Total portfolio | 2.70 | -2.08 | £9,792 | ||
| Cherry Reynard | Diverse Income Trust | UK Equity Income | 8.88 | 14.99 | £2,875 |
| JP Morgan US Smaller Companies | North American Smaller Companies | 6.01 | -18.49 | £2,038 | |
| Polar Capital Global Healthcare | Biotechnology & Healthcare | -2.73 | -7.47 | £2,313 | |
| Renewables Infrastructure | Renewable Energy Infrastructure | 3.62 | -1.03 | £2,474 | |
| Total portfolio | 3.95 | -3.00 | £9,700 | ||
| Ian Cowie | Alliance Witan | Global | 5.19 | -3.26 | £2,418 |
| Edinburgh Worldwide | Global Smaller Companies | 6.09 | -15.83 | £2,104 | |
| India Capital Growth | India/Indian Subcontinent | 0.59 | -11.69 | £2,208 | |
| JP Morgan US Smaller Companies | North American Smaller Companies | 6.01 | -18.49 | £2,038 | |
| Total portfolio | 4.47 | -12.32 | £8,768 | ||
All data to 31 May 2025. The information and trust selections are for entertainment purposes only and do not constitute investment advice or personal recommendations. The opinions expressed are those of the individual writers and not of the AIC. You should not make investment decisions based solely on this information and you should seek independent financial advice to identify investments that suit your own personal circumstances and needs. See our full terms of use.
