UK investment trusts, all listed on the London Stock Exchange, continue to demonstrate their versatility, delivering attractive long-term returns and giving investors access to a wide range of opportunities across major sectors, asset classes and investment styles.
In this article, DirectorsTalk interviews some of the leading managers of UK investment trusts, highlighting the breadth of opportunities across global markets and sectors and how experienced managers are positioning portfolios for the next phase of market growth. Across the five interviews, the managers discuss themes including artificial intelligence, UK corporate activity, biotechnology, global equity markets, capital preservation and multi-asset investing, while also considering where valuation, income, resilience and long-term growth potential are creating attractive prospects for investors.
1. Law Debenture: Laura Foll on AI Fears and UK Takeover Opportunities
Laura Foll explains how Law Debenture’s investment structure allows greater flexibility to invest in recovery stocks and undervalued UK businesses. She discusses successful investments in Rolls-Royce, Kier and Babcock, alongside new opportunities in RELX and LSEG following concerns over AI disruption. With UK takeover activity accelerating, Foll also examines portfolio changes, profit-taking and why consumer staples remain underweight.
2. Finsbury Growth & Income Trust: Nick Train on AI and British Businesses
Nick Train argues that artificial intelligence could increase the value of established UK data businesses rather than undermine them. He explains the long-term investment case for LSEG, RELX, Experian and Rightmove, alongside consumer brands including Diageo and Unilever. The interview also covers new portfolio additions, TP ICAP and Games Workshop, and why UK equity valuations could attract further takeover interest.
3. Ruffer Investment Company: Jasmine Yeo on Protecting Capital in Volatile Markets
Jasmine Yeo outlines Ruffer’s investment strategy, which prioritises protecting investors’ capital while seeking positive long-term returns. She explains how the trust combines growth investments with defensive assets, including precious metals and derivatives, to manage inflation, geopolitical uncertainty and market downturns. The discussion also examines opportunities in UK and Chinese equities and why traditional bonds may no longer provide reliable portfolio protection.
4. The Biotech Growth Trust: Josh Golomb on the Recovery in Biotechnology
Josh Golomb discusses the recovery in biotechnology shares and why he believes the sector has further potential. He highlights improving valuations, increasing pharmaceutical takeover activity and reduced regulatory uncertainty as factors supporting renewed investor interest. Particular attention is given to advances in cancer treatments, including RAS inhibitors and daraxonrasib, which could improve treatment outcomes for patients with pancreatic and other cancers.
5. Fidelity Investment Companies: Opportunities Across Global Equity Markets
Five Fidelity portfolio managers discuss investment opportunities across the UK, Europe, China, Asia and emerging markets. The presentations explore attractive valuations, overlooked smaller companies, China’s technological development, European dividend growth and the potential for a recovery in UK equities. They also examine how AI, interest rates and geopolitical developments are influencing investment decisions, with an emphasis on disciplined stock selection and diversification.
