Capital growth and income investing funds and opportunities

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In this article, DirectorsTalk showcases from its leading funds platform recent news and exclusive fund manager and research analyst interviews for five listed investment companies on the London Stock Exchange. In this piece, we give our readers fund insights into the varied Real Estate, Energy & Resources, Europe, Emerging Markets and Asian markets. 

Fidelity Asian Values Plc (LON:FASprovides shareholders with a differentiated equity exposure to Asian Markets.

Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.

Real Estate Credit Investments (LON:RECIis a closed-ended investment company, incorporated in Guernsey, which originates and invests in real estate debt secured by commercial or residential properties in Western Europe, focusing primarily on the United Kingdom, France and Germany. The Company’s aim is to deliver a stable quarterly dividend with minimal volatility, across economic and credit cycles, through a levered exposure to real estate credit investments.

BlackRock Energy and Resources Income Trust plc (LON:BERI) aims to achieve an annual dividend target and, over the long term, capital growth by investing primarily in securities of companies operating in the mining and energy sectors. 

JPMorgan European Discovery Trust (LON:JEDTaims to provide capital growth from a diversified portfolio of smaller European companies (excluding the United Kingdom). As the emphasis is on capital growth rather than income, shareholders should expect the dividend to vary from year to year. 

Portfolio Manager, Ed Greaves, provides an overview of the trust here and all the latest performance news.

Fidelity Emerging Markets (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies. 

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JPMorgan European Discovery Trust reports strong performance uplift in latest factsheet

JPMorgan European Discovery Trust reported a 5.37% share price rise in July 2025, outpacing NAV and its benchmark. Year-to-date, the share price is up 34.17%, supported by strong small-cap performance and effective stock selection.

Fidelity Emerging Markets shareholders to benefit on repurchase of Strathclyde’s holding

Fidelity Emerging Markets Limited has agreed a conditional share repurchase deal with Strathclyde Pension Fund for its entire 25.7% holding, subject to shareholder approval. The £NAV-discounted repurchase is expected to complete in November 2025, cancelling 16.4m shares and delivering an estimated 4% uplift to NAV per share for ongoing shareholders.

Fidelity Asian Values reports 17% share price rise over 12 months 

The Trust’s NAV rose 12.4% over the 12 months to 31 July 2025, ahead of the index at 7.1%, with the share price up 17.0%. Stock selection was the key driver of relative performance, with holdings in China and Hong Kong adding value, while overweight exposure to Indonesia detracted.

Fidelity Emerging Markets Limited Factsheet: share price continues rise in July

Emerging markets delivered positive returns in July, marginally ahead of developed markets. The portfolio also gained but underperformed its index, with financials and industrials weighing on performance, while technology stock selection was supportive.

Fidelity favours investing in Chinese small and mid-cap companies (LON:FAS)

Fidelity Asian Values Investment Director Himalee Bahl highlights the Trust’s disciplined value-focused approach amid market uncertainty. By targeting undervalued small and mid-cap companies across China, Indonesia, and South Korea, the Trust avoids momentum-driven areas such as AI-related stocks in Taiwan and expensive Indian small caps.

Emerging markets investment opportunities and why invest now?

Fidelity Emerging Markets' portfolio manager Chris Tennant highlights how lower debt levels, strong reserves, early interest rate action and a weaker US dollar create favourable conditions.

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