Investment trust review H1 2025
A “whirlwind half-year” of mergers, acquisitions and liquidations.
There were two mergers, four acquisitions and 11 liquidations in the first six months of 2025 as investment trust boards responded to double-digit discounts, according to data from the Association of Investment Companies (AIC)1.
Share buybacks reached £4.77 billion2, 32% higher than in the first six months of 2024 (£3.62 billion).
It has been a whirlwind half-year even exceeding the busy first half of 2024. There have been 17 mergers, acquisitions and liquidations, versus nine in the same period last year, and share buybacks are nearly a third higher.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
All this activity helped to narrow the gap between trusts’ share prices and the value of their assets, with the average industry discount ending the half-year at 13.9%, compared to 15.3% at the end of 2024.
There was one IPO, Achilles Investment Company, which raised £54 million. Secondary fundraising (by existing investment trusts) in the six-month period totalled £221 million, more than a third of which was raised by the Debt – Loans and Bonds sector (£85 million).
Two trusts changed their manager and 19 trusts changed their fees to benefit shareholders.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “It has been a whirlwind half-year even exceeding the busy first half of 2024. There have been 17 mergers, acquisitions and liquidations, versus nine in the same period last year, and share buybacks are nearly a third higher. Boards have been engaging with shareholders and considering all options to maximise value – we have seen 19 fee changes to benefit shareholders in the past six months.”
Mergers
Two mergers were completed in H1 (see below), with an additional two proposed during the last six months. These are a merger between The European Smaller Companies Trust and European Assets Trust and a merger between Fidelity European Trust and Henderson European Trust. If approved, both mergers are expected to complete before the end of the year.
| 2025 | Merged trusts | Continuing trust | AIC sector |
|---|---|---|---|
| Feb | Asia Dragon Trust | Invesco Asia Dragon Trust | Asia Pacific Equity Income / Asia Pacific |
| May | JPMorgan Global Growth & Income / Henderson International Income | JPMorgan Global Growth & Income | Global Equity Income / Global Equity Income |
Source: theaic.co.uk
Acquisitions
| 2025 | Investment trust | Management group | AIC sector | Acquirer |
|---|---|---|---|---|
| May | Care REIT | Impact Health Partners | Property – UK Healthcare | CareTrust |
| Jun | BBGI Global Infrastructure S.A. | BBGI Management | Infrastructure | Boswell Holdings |
| Jun | Harmony Energy Income | Harmony Energy Advisors | Renewable Energy Infrastructure | PP Bidco (Foresight) Limited |
| Jun | Urban Logistics REIT | Logistics Asset Management | Property – UK Logistics | LondonMetric Property |
Source: theaic.co.uk
Management changes
| 2025 | Investment trust | New management group | AIC sector | Previous management group |
|---|---|---|---|---|
| Jan | Social Housing REIT (formerly Triple Point Social Housing REIT) | Atrato Partners | Property – UK Residential | from Triple Point Investment Management |
| Mar | Artemis UK Future Leaders (formerly Invesco Perpetual UK Smaller Companies) | Artemis Fund Managers | UK Smaller Companies | from Invesco Asset Management |
Source: theaic.co.uk
Liquidations
| 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 |
Source: theaic.co.uk
- ENDS -
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Notes to editors
- All data in this release excludes VCTs.
- Excludes tender offers and redemptions.
- 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 299 members and the industry has total assets of approximately £263 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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