Trump's Liberation Day
What's the impact on trusts?
To mark the four-week anniversary of President Trump’s ‘Liberation Day’ announcements, the Association of Investment Companies (AIC) has published a list of the investment trust sectors that have performed the best and worst in the wake of those announcements.
Yes, it's time to reallocate to Euorpe
No, I'm staying put - this will blow over
The average investment trust returned 1.8% from 2 April, the date of the announcements, to 25 April. This was boosted by strong performances from trusts focused on private equity, Japan and property, while those investing in China, Asia and North America saw negative returns during the period.
Nick Britton, Research Director of the Association of Investment Companies (AIC), said: “President Trump’s announcements on 2 April and his subsequent flip-flopping sent stock markets into a spin, but four weeks later some winners and losers are emerging. Winners include interest rate sensitive sectors, such as property and infrastructure, which would benefit from rates coming down faster than expected to soothe a troubled economy. UK equities have also done relatively well, as the UK is perceived as being less affected by the tariffs, and Japanese equities have also been resilient. Meanwhile, the stock markets of the trade war’s major players – the US and China – have both suffered.
“The differing fortunes of investment trust sectors since Liberation Day underlines the importance of having a diversified portfolio. Investors would be well advised to stay calm, stick to their plans and take a long-term view while the tariff war rages on.”
See the best performing AIC sectors since Liberation Day.
The best performing investment trust since Liberation Day is private equity giant 3i Group, which has enjoyed a 15.4% return.
This is followed by Urban Logistics REIT in the Property – UK Logistics sector, which has recently received a possible offer from LondonMetric Property, DP Aircraft I in the Leasing sector, and Bluefield Solar Income Fund in the Renewable Energy Infrastructure sector.
See the best performing investment trusts since Liberation Day.
