Investment trust 2025 review (updated): another record year for corporate activity
27 deals done and £10 billion of shares bought back, both new records.
2025 saw a frenzy of corporate activity, with 27 mergers, acquisitions and liquidations completed in the year, surpassing the previous record of 24 set in 20241.
Share buybacks2 soared 36% to £10.22bn compared to £7.51bn in 2024, which was the previous record. The sectors with the most buybacks were Global (£2.87bn), Biotechnology & Healthcare (£748m) and UK Smaller Companies (£607m).
Discounts narrowed over the year, with the average investment trust discount excluding 3i standing at 12.5% on 31 December3, compared to 15.0% on the last day of 2024.
Last year investment trusts continued to reshape themselves to meet investors’ needs, with the pace of mergers, acquisitions and liquidations in the sector showing no sign of slowing.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
The total assets of investment trusts fell by just over £3bn during the year, finishing December at £265.51bn compared to £268.62bn at the end of 2024. Dividends paid in 2025 totalled £6.41bn4.
Fundraising by existing investment trusts totalled £530m, led by trusts in the Debt – Loans & Bonds sector which raised £206m. The trust that raised the most over the year was TwentyFour Income Fund in the Debt – Structured Finance sector, which raised £96m from investors. There was one IPO, Achilles Investment Company, which raised £54m.
During the year, a record 41 investment trusts changed their fees to benefit shareholders, compared to 32 in 2024 and 26 in 2023. The most common type of fee change was a reduction in base fee, applying to 30 trusts. This includes 18 cases where a trust switched its fee basis: for example, from a charge based on net assets to one based on the lower of net assets and market capitalisation.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Last year investment trusts continued to reshape themselves to meet investors’ needs, with the pace of mergers, acquisitions and liquidations in the sector showing no sign of slowing. In addition, a record number of investment trusts changed their fees to benefit investors. This all demonstrates how investment trust boards are working hard to deliver value for their shareholders.”
See below for more detail on performance, mergers, manager changes, liquidations, acquisitions and secondary fundraising.
Performance in 2025
The average investment trust returned 12.1% in 2025, with the top performing sector being Commodities & Natural Resources with a return of 61.6%. The next best performing sector was China / Greater China returning 39.0% followed by Global Emerging Markets (37.2%), Growth Capital (36.5%) and Technology & Technology Innovation (30.3%)5.
Mergers in 2025
Five mergers were completed in 2025. A further merger between Invesco Global Equity Income Trust and Franklin Global Trust, with the former being the continuing company, is expected to complete early this year.
| 2025 | Merged trusts | Continuing trust | AIC sector |
|---|---|---|---|
| Feb | Invesco Asia Trust / Asia Dragon Trust | Invesco Asia Dragon Trust | Asia Pacific Equity Income |
| May | JPMorgan Global Growth & Income / Henderson International Income | JPMorgan Global Growth & Income | Global Equity Income |
| Sep | Fidelity European Trust / Henderson European Trust | Fidelity European Trust | Europe |
| Oct | The European Smaller Companies Trust / European Assets | The European Smaller Companies Trust | European Smaller Companies |
| Nov | AVI Japan Opportunity Trust / Fidelity Japan | AVI Japan Opportunity Trust | Japanese Smaller Companies |
Source: theaic.co.uk
Manager changes in 2025
Three investment trusts changed their manager during the year. In addition, Murray Income Trust has appointed Artemis Fund Managers as its new manager, replacing Aberdeen, a change expected to take effect in the first quarter of 2026.
| 2025 | Investment trust (current name) | New management group | AIC sector | Previous management group |
|---|---|---|---|---|
| Jan | Social Housing REIT | Atrato Partners | Property – UK Residential | Triple Point Investment Management |
| Mar | Artemis UK Future Leaders | Artemis Fund Managers | UK Smaller Companies | Invesco Asset Management |
| Jul | Hydrogen Capital Growth | RWC Asset Management (Redwheel) | Renewable Energy Infrastructure | HydrogenOne Capital |
Source: theaic.co.uk. Management group changes which result from a restructure, merger or acquisition at the management group level are not included.
Liquidations in 2025
There were 15 liquidations of investment trusts in 2025, the highest number of liquidations since 2016.
| 2025 | Investment trust | Management group | AIC sector |
|---|---|---|---|
| Jan | Blackstone Loan Financing | Blackstone/GSO Loan Financing | Debt – Structured Finance |
| Jan | Doric Nimrod Air Two | Doric Partners | Leasing |
| Jan | Dunedin Enterprise | Dunedin | Private Equity |
| Feb | Downing Strategic Micro-Cap | Downing | UK Smaller Companies |
| Feb | Triple Point Energy Transition | Triple Point Investment Management | Renewable Energy Infrastructure |
| Mar | Menhaden Resource Efficiency | Menhaden Capital Management | Environmental |
| Mar | SVM UK Emerging Fund | River Global | Debt – Structured Finance |
| Mar | Henderson Opportunities | Janus Henderson Investors | UK All Companies |
| Mar | Jupiter Green | Jupiter Unit Trust Managers | Environmental |
| Mar | Keystone Positive Change | Baillie Gifford | Global |
| May | Miton UK MicroCap Trust | Miton Trust Managers | UK Smaller Companies |
| Oct | Middlefield Canadian Income | Middlefield International | North America |
| Dec | Premier Miton Global Renewables | Premier Miton | Infrastructure Securities |
| Dec | NB Distressed Debt | Neuberger Berman Europe | Debt – Loans & Bonds |
| Dec | Weiss Korea Opportunity | Weiss Asset Management | Country Specialist |
Source: theaic.co.uk.
Acquisitions in 2025
Seven investment trusts were acquired in 2025. A further investment trust, PRS REIT, is in the process of being acquired by Waypoint Asset Management.
| 2025 | Investment trust | Management group | AIC sector | Acquirer |
|---|---|---|---|---|
| May | Care REIT | Impact Health Partners | Property – UK Healthcare | CareTrust (a US REIT) |
| Jun | BBGI Global Infrastructure S.A. | BBGI Management | Infrastructure | BCI |
| Jun | Harmony Energy Income | Harmony Energy Advisors | Renewable Energy Infrastructure | PP Bidco (Foresight) |
| Jun | Urban Logistics REIT | Logistics Asset Management | Property – UK Logistics | LondonMetric Property |
| Sep | Apax Global Alpha | Apax Guernsey Managers | Private Equity | Janus Bidco |
| Oct | Warehouse REIT | Tilstone Partners | Property – UK Commercial | Wapping Bidco (Blackstone) |
| Nov | Downing Renewables & Infrastructure | Downing | Renewable Energy Infrastructure | Bagnall Energy |
Source: theaic.co.uk.
Secondary fundraising in 2025
Fundraising by existing investment trusts, known as secondary fundraising, totalled £530m in 2025. This was down 37% on the total raised in 2024, which was £845m.
A table of the investment trusts that raised the most in secondary fundraising during 2025 can be found below.
| Investment trust | AIC sector | Total secondary fundraising in 2025 (£m) |
|---|---|---|
| TwentyFour Income Fund | Debt – Structured Finance | 95.62 |
| Invesco Bond Income Plus | Debt – Loans & Bonds | 59.42 |
| Henderson Far East Income | Asia Pacific Equity Income | 57.05 |
| TwentyFour Select Monthly Income | Debt – Loans & Bonds | 48.74 |
| M&G Credit Income | Debt – Loans & Bonds | 44.19 |
Source: theaic.co.uk. All fundraising is secondary fundraising. Closed issues admitted to trading only. Excludes VCTs and shares issued from treasury.
- ENDS -
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Notes to editors
- The source for all data in this release is theaic.co.uk, unless otherwise stated. All data in this release excludes venture capital trusts (VCTs) except for total assets. VCTs made up £6.56bn of investment trusts’ £265.51bn of total assets on 31/12/25.
- Open market share buybacks only, excludes tender offers and redemptions.
- Source: theaic.co.uk / Morningstar (as at 31/12/25).
- Source: theaic.co.uk / Morningstar (to 31/12/25).
- Source: theaic.co.uk / Morningstar (to 31/12/25).
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 281 members and the industry has total assets of approximately £269 billion.
- For more information about the AIC and investment trusts, visit the AIC’s website.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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