US will do worst over next 12 months, say investment trust investors
Private investor sentiment survey shows shift from growth to value.
US equities are expected to be the worst performing sector over the next 12 months, according to a survey of 204 investment trust investors by Research in Finance1.
When asked what they expected to be the worst performing sector, 29% of respondents chose the US, followed by 26% who said property would be worst performing.
Perhaps surprisingly given investors’ concerns about the US, the best performing sector was expected to be technology (31% of respondents), followed by global equities (24%) and the UK (22%).
Investment trust investors are still fans of the tech growth story, but some are clearly becoming nervous about having too much exposure to highly valued parts of the market.
Nick Britton, Research Director of the Association of Investment Companies (AIC)
There has been a shift from growth to value among private investors in investment trusts, although growth remains the more popular approach. Some 37% of respondents favoured a value style, up from 27% last year, while 42% preferred growth, down from 51%.
One investor said: “Because of economic slowdown I favour the value approach since last year, but I am not keeping my eyes shut on growth. I am very much interested in growth in the technology sector.”
Another said: “My portfolio is well balanced across growth and value, with my recent purchases looking to move the portfolio away from the USA and growth stocks into a more value approach.”
Nick Britton, Research Director of the Association of Investment Companies (AIC), said: “Investment trust investors are still fans of the tech growth story, but some are clearly becoming nervous about having too much exposure to highly valued parts of the market. While they aren’t necessarily slashing their US exposure, they are certainly warming to a number of sectors that have been out of favour but where recent performance has picked up, including the UK, Europe and emerging markets.”
Oliver Crawford, Research Manager of Research in Finance, said: “Investment trust holders are growing increasingly cautious about overconcentration in US stocks. While they aren’t abandoning US equities altogether, concerns over the high valuations of technology shares and a possible correction are prompting a shift. Our research shows that investors are now actively looking to rebalance towards other regions, with the UK and Europe gaining notable favour compared to a year ago. Investors are also telling us that they are becoming more interested in investment trusts with a ‘value’ approach, as they see these as offering greater stability and resilience.”
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Notes to editors
- The findings in this release are from the UK Investment Trust Study (UKITS) by Research in Finance. This study includes an annual survey of private investors who hold investment trusts. The research is funded by a consortium of asset managers and the AIC. The fieldwork was conducted between 29 August and 8 September 2025.
- 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.
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