Ian Cowie: the winners and losers in my ‘forever fund’ in Q2 2025
17 out of 18 investment trusts held by our columnist were in positive territory in the second quarter of 2025. Here, he runs through the three best and worst performers.
2nd July 2025 17:55
by Ian Cowie from interactive investor

Several stock market surprises, tariff tantrums and violent conflicts overseas helped to make the first half of 2025 “interesting times” for investors, to paraphrase the Chinese curse. On a brighter note, the second quarter of this year (Q2) - or the last three months - saw global share prices bounce back strongly, with no fewer than 17 of the 18 investment trusts in my ‘forever fund’ producing positive returns.
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But, because I know that some of you enjoy my pratfalls more than my profits, let’s begin with the laggards in Q2, starting with my only loser in cash terms. Step forward, somewhat surprisingly, JPMorgan US Smaller Companies (LSE:JUSC), which turned £1,000 into £973 during the three months to the end of June.
Medium-sized and smaller businesses were not immune to the anti-American backlash building in response to US President Donald Trump’s erratic approach to managing the world’s biggest economy. I had thought they might be immune - and even picked JUSC for a ‘shares of the year’ parlour game elsewhere - but must admit I was wrong.
Underlying top 10 holdings range from Bright Horizons, America’s biggest provider of employer-sponsored nursery care, to Casella Waste Systems, a rubbish-collection company started by an enterprising Yank called Doug Casella with a pick-up truck 50 years ago, and JUSC shares continue to be priced -9% below their net asset value (NAV).
I transferred these shares from a paper-based broker in 2014, when they were priced at £1.50, and they were trading at £3.90 this week. So, having been a JUSC shareholder for more than a decade, I am not going to let six months’ underperformance override my enthusiasm for this fund.
Next worst in Q2 was another long-term holding, Worldwide Healthcare (LSE:WWH), which turned £1,000 into £1,014. Once again, some of the blame seems to fall on Trump and his eccentric appointment of vaccine sceptic Robert Kennedy Junior as health secretary.
However, having held WWH for more than a decade - I transferred stock at £1.35 in 2014, allowing for a subsequent share split, that trades around £3.01 this week, it’s only fair to admit that I am beginning to get sick of underperformance after five years of share price shrinkage. Without wishing to make this personal, I note the decline coincides with the departure of its former manager.
Looking forward, I wonder whether my enthusiasm for investing in this sector might be better-served by another investment trust. For example, Polar Capital Global Healthcare is the sector leader over five and 10-year periods; or International Biotechnology (LSE:IBT), the leader - albeit with a small loss - over the last year.
F&C Investment Trust (LSE:FCIT) is third-worst in Q2 and another surprising underperformer with an end value of £1,032, on the same basis. This is embarrassing because FCIT is the supposedly reliable global fund I bought for my grandson, Charlie, paying £8.86 in July 2023. But he is not yet three years-old and FCIT currently trades around £11.14, so I am not going to panic yet.
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Turning to the winners, the surprises keep coming with Schroders Capital Global Innovation Trust (LSE:INOV) being the third-best performer in my investment trust portfolio, finishing Q2 at £1,259. A decade after I paid £1 per share in the launch of what was then called Woodford Patient Capital, this remains among the worst of Cowie’s Clangers, or shares whose price fell by more than 10% after I invested.
Now a tender offer, where the managers expect to buy back some stock for an indicative 21p per share to begin winding-up this fund has caused the current ‘dead cat bounce’. I hope to write more about this when, like other shareholders, I must decide what to do about the tender offer by 22 July.
More happily, Polar Capital Technology (LSE:PCT) is my second-best investment trust in Q2, turning £1,000 into £1,263. Fears that China might beat America in the race to commercialise artificial intelligence (AI) seemed to shoot down the ‘Magnificent Seven’ technology leaders in Q1 but now the US tech giants are riding high again.
Having transferred stock from a paper-based broker at 43p in 2013, allowing for a subsequent share split, they trade at £3.64 as I write. PCT’s top 10 holdings include Apple and Microsoft to name just two of the American businesses where more good news might be imminent.
Saving the best till last, Seraphim Space Investment Trust (LSE:SSIT) soared into the stratosphere, transforming £1,000 into £1,540 in just three months. I am sad this has happened because of rising fears that Europe must spend more on defence - most of SSIT’s underlying assets are Continental European defence-related space stocks - but jolly glad I invested 1% of my life savings, paying 53p in March for shares that currently cost 86p.
Nick Britton, research director of the Association of Investment Companies (AIC), told me: “The stratospheric 54% gain from Seraphim Space makes it the best-performing investment trust in the quarter.
“But gains have been broad-based, with the UK, European and Japanese smaller companies sectors all seeing double-digit percentage gains in Q2 and the Renewable Energy Infrastructure sector up 16% on the back of corporate activity and narrowing discounts.
“Given what’s happened over the last three months, from Donald Trump’s ‘liberation day’ to the US attack on Iran, it’s surprising that markets have delivered such robust gains.”
You can say that again, Nick. Let’s hope for more pleasant surprises in the second half of 2025 while taking a long-term view of short-term share price volatility.
Ian Cowie is a freelance contributor and not a direct employee of interactive investor.
Ian Cowie is a shareholder in Apple (AAPL), F&C Investment Trust (FCIT), JPMorgan US Smaller Companies (JUSC), Microsoft (MSFT), Polar Capital Technology (PCT), Schroders Capital Global Innovation (INOV), Seraphim Space Investment Trust (SSIT) ad Worldwide Healthcare (WWH) as part of a globally-diversified portfolio of investment trusts and other shares.
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