Fantasy fund manager: Kyle Caldwell
Kyle Caldwell, Funds Editor of interactive investor, reveals which trusts he’s tipping for the top.
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, interactive investor’s Kyle Caldwell explains which four trusts he thinks have attractive prospects in 2025.
Alliance Witan
This a one-stop-shop for investors as it owns just over 200 companies, with the stock picking outsourced to a selection of fund managers who are asked to pick 20 of their best ideas.
Over the past couple of years most global fund managers have struggled to gain an edge over the MSCI World Index due to the market dominance of a small number of technology stocks, the so-called Magnificent Seven. Looking ahead if there are a broader set of winners across global markets, Alliance Witan could capitalise due to it being “style neutral” in owning both growth and value stocks.
Fidelity Special Values
This trust invests across the UK market. However, it has a bias to small- and mid-cap businesses. This part of the UK market looks interesting in terms of valuations, as many sectors and businesses saw their share prices hammered by interest rate rises. Now that interest rates are starting to fall, now could be a good entry point. I like that Fidelity Special Values’ fund manager Alex Wright has a contrarian approach to finding value opportunities across UK companies.
Fidelity Special Values profile page
Personal Assets Trust
This is a wealth preservation strategy. Managed by Troy Asset Management, it focuses on four key areas to grow and protect investor returns. These are: high-quality growth shares, which account for 30% of the portfolio at present; inflation-linked bonds; gold; short-dated bonds and cash. Given this trust has plenty of defensive armoury I would expect it to perform well if stock markets go through a rocky patch.
Personal Assets Trust profile page
RTW Biotech Opportunities
And finally, as a satellite holding, I am looking to bag a potential bargain in RTW Biotech Opportunities, which is on a big discount of over 25% at time of writing. It specialises in a sector that has plenty going for it from an investment perspective and should see sustained demand over the long term given that companies are aiming to develop drugs that are badly needed by people all around the world.
RTW Investments has a diverse team, including scientists and entrepreneurs, which work together to identify the best opportunities from both public and private companies.
RTW Biotech Opportunities profile page
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