Fantasy fund manager: Ian Cowie
The Sunday Times columnist unveils his top investment trusts for 2025.
In the AIC’s first fantasy fund manager competition, we’ve asked six journalists to select four investment trusts that they expect to perform particularly well in 2025, but would be happy to hold for the long term. Below, Sunday Times columnist Ian Cowie reveals which four trusts he’s selected and why he thinks they’re likely to do well this year.
Alliance Witan
This global giant with £5.5 billion of assets gives exposure to technology companies including Microsoft and Nvidia but also the pharmaceutical business Eli Lilly. The credit card companies Mastercard and Visa also feature in ALW’s top ten, alongside the brewer and distiller, Diageo.
This diversified portfolio should diminish risk and enjoy economic rewards, wherever they arise. There is a modest dividend yield of 2.2% but it has risen by an impressive annual average of 13% over the last five years and ongoing charges of 0.62% demonstrate how economies of scale can cut costs.
Edinburgh Worldwide Investment Trust
Another global fund but with the focus on smaller companies. These include Space Exploration Technologies or SpaceX, which is not listed on any stock market, but has nearly 7,000 satellites in orbit. Led by the controversial billionaire, Elon Musk, SpaceX has the potential to disrupt internet service providers around the world.
EWI’s other assets include the drone-maker, AeroVironment and the body camera business Axon Enterprise. This future-facing fund could take off in 2025. There are no dividends but, once again, charges are low at 0.7%.
Edinburgh Worldwide Investment Trust profile page
India Capital Growth Fund
The world’s largest democracy and its fifth biggest economy by gross domestic product had a relatively quiet year in terms of stock market returns during 2024. But that could set the stage for recovery soon.
IGC yields no dividends but adds excitement to the mix by selecting smaller companies that might have the most scope for growth. It could also benefit from deteriorating relations between America and China as big companies, including Apple, transfer some of their production from China to India. Ongoing charges of 1.57% are not cheap but might be regarded as reasonable to gain exposure to opportunities few British investors could access otherwise.
India Capital Growth Fund profile page
JPMorgan US Smaller Companies Investment Trust
Tariffs or taxes that the incoming American president threatens to impose on imports could be bad news for big, international businesses but should help those with a more domestic focus in the world’s largest economy.
Donald Trump’s pledge to cut taxes and make America great again might be especially beneficial for smaller companies that have lagged behind their larger rivals recently. None of JUSC’s top ten holdings is a household name in Britain but it is reassuring to see that its lead manager, Don San Jose, has been at the helm since 2009. Dividend income is meagre at 0.63%, albeit rising by an annual average of 3.7%, with ongoing charges of 0.93%.
JPMorgan US Smaller Companies Investment Trust profile page
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