QuotedData’s Real Estate Monthly Roundup – May 2025

• 15 May 2025
• Richard Williams

Winners and losers in April 2025

Best performing funds in price terms

	(%)
Social Housing REIT	15.7
Urban Logistics REIT	12.0
Regional REIT	10.4
Helical	9.6
NewRiver REIT	9.5
Sirius Real Estate	9.4
Primary Health Properties	9.2
Shaftesbury Capital	8.7
Big Yellow Group	7.9
Land Securities	7.7

Source: Bloomberg, Marten & Co

Amid the global tariff turmoil brought on at the start of April by Trump’s so-called ‘liberation day’, real estate stocks have proved resilient, perhaps reflecting the sector’s defensive characteristics and income-generating traits. The average share price uplift was 2.7% over the month, and 4.6% in the year-to-date. Leading the way was
Social Housing REIT, which appears to be making strong progress under its new manager Atrato Capital.

Urban Logistics REIT’s share price jumped on news that it was the target of LondonMetric (see the corporate activity section for details), which, after the month end, tabled a recommended cash and shares offer for the company. Promising signs that the bottom has finally been reached in secondary office values spurred on Regional REIT’s share price to a double-digit rise over the month. Its shares and the sub-sector will certainly be worth keeping an eye on over the rest of the year. Meanwhile, London office developer Helical successfully sold one of its developments for £333m during the month (see the news section for more details).

Worst performing funds in price terms

	(%)
Grit Real Estate Income Group	(17.6)
CLS Holdings	(10.0)
Ground Rents Income Fund	(7.2)
Globalworth Real Estate	(5.0)
Life Science REIT	(2.0)
Real Estate Investors	(1.7)
SEGRO	(1.5)
First Property Group	(0.7)
Care REIT	(0.7)
Schroder European REIT	(0.3)

Source: Bloomberg, Marten & Co

Grit Real Estate’s share price seems to be on a downward spiral with yet another double-digit monthly share price fall in April. It is now down 33.3% during 2025, having already been derated significantly over the last few years. Office landlord CLS Holdings, which owns assets in the UK, France and Germany, is also struggling with downward share price momentum – not helped by severe illiquidity in its shares. Ground Rents Income Fund is another familiar name in the worst performing funds table as values continue to be hit by legacy issues and legislative changes. Life Science REIT’s share price cooled in April having jumped 30%+ in March after the company was effectively put up for sale. It was a similar story for Care REIT whose shares leapt almost 40% on news of its acquisition by a US REIT, which took effect after the month end (see the corporate activity section for more details). The industrial and logistics sector would appear most exposed to US tariffs with European manufacturing and exports set to take a hit, which was likely behind weakness in SEGRO’s share price in April.

Valuation moves

Company	Sector	NAV move (%)	Period	Comments
Life Science REIT	Offices/labs	(6.9)	Full year to 31 Dec 24	Like-for-like portfolio valuation down 4.0% to £385.2m
Phoenix Spree Deutschland	Europe	(10.4)	Full year to 31 Dec 24	NAV primarily due to portfolio sale during the year at substantial discount to book value

Source: Marten & Co

Corporate activity in April

LondonMetric Property made a proposal to acquire Urban Logistics REIT in a cash and shares offer. The proposal consisted of new shares in LondonMetric based on a NAV for NAV exchange ratio plus a fixed amount in cash. Under the terms of the proposal, shareholders in Urban Logistics would be entitled to receive 0.5612 new LondonMetric shares and 42.8p in cash – valuing Urban Logistics in a range of £675m to £700m (depending on LondonMetric’s share price).

Assura agreed to the terms of a recommended cash offer for the company by Kohlberg Kravis Roberts (KKR) and Stonepeak Partners. Under the terms, each Assura shareholder is entitled to receive 49.4p, in line with its EPRA net tangible assets (NTA) value at 30 September 2024, which was also a 31.9% premium to the undisturbed share price The deal values Assura at around £1,608m. In recommending the offer, Assura’s board also unanimously rejected Primary Health Properties merger (PHP) offer. PHP said it would continue to explore a merger.

Care REIT’s £448m acquisition by US-listed care home provider CareTrust will progress after shareholders voted overwhelmingly in favour (84.76%) of the deal at 108p per share (a 32.8% premium to the prevailing share price but a 9.4% discount to its last reported NAV). The company’s last day of trading was 8 May.

April’s major news stories – from our website

• Supermarket Income REIT forms £400m+ JV with Blue Owl

Supermarket Income REIT entered into a £403m, 50:50 joint venture (JV) with Blue Owl Capital. The JV was seeded with eight properties from the company’s existing portfolio, which were transferred at a 3% premium to book value. The partners will seek to grow the JV to up to £1bn over the coming years.

• Empiric Student Property adds to Brum cluster

Empiric Student Property acquired Selly Oak Apartments in Birmingham for £9.0m. The 63-bed mixed studio and shared apartment scheme is fully-let for the 2024/25 academic year and is expected to deliver a yield in excess of 6% from September 2025. The company now has 430 beds in the Selly Oak cluster.

• Tritax Big Box REIT halfway there on non-core sales programme

Tritax Big Box REIT updated on its non-core disposals following the acquisition of UK Commercial Property REIT almost a year ago. It has sold £235.7m of assets, representing half of the £475m identified, with a further £95.6m under offer.

• Life Science REIT hits new rental level at Oxford Technology Park

Life Science REIT let 5,600 sq ft at the Innovation Quarter at Oxford Technology Park to Oxford Expression Technologies Limited, a biotech company specialising in protein production for vaccine development, disease research, and drug testing, at a new rental record for the park of £46.50 per sq ft per annum.

• Helical sells City office to State Street for £333m

Helical sold 100 New Bridge Street, a City of London office development, to investment bank State Street for £333m. The 195,000 sq ft office will become the company’s new London headquarters, with the purchase price reflecting a 5% yield.

• LondonMetric forward-funds £74m M&S-let warehouse

LondonMetric Property acquired a pre-let M&S logistics warehouse in Bristol for £74.0m, reflecting a NIY of 5.65%, in a forward-funding deal. The 390,000 sq ft regional logistics warehouse is pre-let to M&S on a 20-year lease with five yearly upward only rent reviews linked to CPI.

• Great Portland Estates ramps up ‘fully managed’ office lettings

Great Portland Estates announced a further nine office lettings across its ‘fully managed’ offering, securing £7.2m of annual rent at an average of £215 per sq ft. This was 14.1% ahead of ERV and generated a 112% premium to an equivalent traditional office lease. The lettings were across 33,500 sq ft of newly refurbished office space in six GPE buildings.

Visit https://www.QuotedData.com for more on these and other stories plus analysis, comparison tools and basic information, key documents and regulatory announcements on every real estate company quoted in London

Manager’s views

A collation of recent insights on real estate sectors taken from the comments made by chairmen and investment managers of real estate companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of the companies mentioned.

Offices/labs

Life Science REIT – Claire Boyle, chair

2024 was a challenging year for leasing across the Golden Triangle (research and development hubs of Oxford, Cambridge and London), with life sciences take up of 460,000 sq ft, just over half the amount of 2023. The uptick in confidence which followed the general election proved short-lived and sentiment weakened post the budget. However, the Government has demonstrated its support for the sector, with planned investment into the Oxford and Cambridge region, including a new rail link, and the funding environment has strengthened.

In 2024, £3.7bn was raised for UK biotech funding, making it the strongest year since the 2021 peak. £2.2bn was raised through venture capital funding and a further £1.5bn was raised through follow on financings, suggesting a preference for well established, lower risk ventures. Inevitably it takes time for the impact of a successful fund raise to filter through to real estate decision making, but by the end of 2024, 300,000 sq ft of space was under offer to life sciences companies.

Europe

Phoenix Spree Deutschland – Stuart Young, fund manager

The Berlin property market has demonstrated a notable disparity in achievable sales values per square meter between condominiums (individually owned apartments) and PRS properties (apartment blocks intended for private rental). While condominium prices and transaction volumes have remained broadly stable, valuations for PRS properties have experienced a sharp decline since their peak in 2022. This trend was reflected in the company’s disposal progress in 2024, where condominium sales achieved average per sqm valuations that were 92% higher than those of individual PRS property sales. This polarisation has shaped the company’s strategy, which now prioritises unlocking value through increased condominium sales.

Although recent data indicates a recovery in transaction activity within Germany’s residential real estate market during the latter half of 2024, uncertainties persist regarding the potential effects of escalating macroeconomic risks – particularly those stemming from the current US administration’s imposition of higher trade tariffs – on investor sentiment and real estate asset demand.

Germany has embarked on a historic fiscal expansion, channelling €500bn into infrastructure modernisation (transport, energy, and digital networks) and an equal sum into defence. This dual-track spending surge marks a departure from decades of fiscal conservatism, driven by geopolitical tensions and aging infrastructure. Constitutional reforms to the Schuldenbremse (debt brake) underpin these initiatives. Previously capping structural deficits at 0.35% of GDP, the revised framework permits borrowing for “future-oriented projects,” including green energy and defence.

The bond market experienced significant volatility in early 2025, with German 10-year bond yields climbing 0.5% to reach 2.8% by March, as investors anticipated increased German debt issuance. This upward pressure later eased following the European Central Bank’s rate reduction and heightened demand for German bunds, which have been viewed as a relatively safer haven during escalating global trade tensions.

There remains a significant and growing shortage of available residential accommodation in Berlin metropolitan areas, particularly Berlin itself, driven by persistent supply-demand imbalances. Whilst the population of Germany has grown by over 1.3 million since 2020, new construction activity has fallen significantly. Project cancellations hit a record high in 2024, and annual apartment completions are projected to fall to 175,000 by 2025 – far below the Federal Government’s 400,000 unit annual target.

A widening cost-price gap has exacerbated supply challenges: since 2022 construction costs have risen by 28%, far outstripping new build price growth. This disparity has pushed tenanted multi-family property values 40% below replacement costs in many regions. New developments now typically focus on high-end or government-backed social housing, leaving Berlin’s middle-market segment (the Company’s core market) underserved.

Without policy support for development, supply-demand imbalances will deepen. Whilst the new coalition government aims to address the affordable housing crisis by accelerating construction through eliminating bureaucracy and financial incentives for cost-effective projects, it is unlikely that this will alleviate housing shortages in the near term. The outlook for Berlin rental values therefore remains positive.

IMPORTANT INFORMATION

This note was prepared by Marten & Co (which is authorised and regulated by the Financial Conduct Authority).

This note is for information purposes only and is not intended to encourage the reader to deal in the security or securities mentioned within it. Marten & Co is not authorised to give advice to retail clients. The note does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

TwentyFour Select Monthly Income Fund Limited

(a non-cellular company limited by shares incorporated in the Island of Guernsey under the Companies (Guernsey) Law 2008, as amended, with registered number 57985 and registered as a Registered Closed-ended Collective Investment Scheme with the Guernsey Financial Services

Re: Dividend Announcement

The Directors of TwentyFour Select Monthly Income Fund Limited (“SMIF“), the listed, closed-ended investment company that invests in a diversified portfolio of credit securities, have declared that a dividend of 0.5 pence per share will be paid, in line with the Prospectus, representing the regular monthly targeted dividend for the financial period ended 30 April 2025 as follows:

Ex-Dividend Date              22 May 2025
Record Date                       23 May 2025
Payment Date                    6 June 2025

Current dividends announced £2,700 which includes the dividend from VPC, which is not a repeatable dividend as it’s a capital return dividend.

Current cash £373.00

Other dividends for the period still to be announced, which will be invested in a new position to replace VPC when they complete their wind down.

Second Interim Dividend

The Second Interim Dividend of 2.20 pence per Ordinary Share (May 2024: 2.20 pence per Ordinary Share) will be payable to Shareholders on the register as at 23 May 2025, with an associated ex-dividend date of 22 May 2025 and a payment date on or around 27 June 2025.

Dividend Guidance Reaffirmed

The Board is pleased to reaffirm its guidance of a full year dividend of not less than 8.90 pence per Ordinary Share for the financial year ending 30 June 2025 (30 June 2024: 8.80 pence). This is expected to be covered by earnings and to be post debt amortisation.

Actual Generation Vs Forecast

Combined generation for the period was 0.3% above forecast. Whilst solar generation had a very strong March (+26%), poor generation across January and February (-10% below forecast) led to solar generation for the quarter performing 9% above forecast. Wind speeds were consistently below forecast during the quarter (-9.7%), which in combination with equipment failure on 2 assets, led to wind generation being 20% below forecast for the quarter.

Having read the news from NESF today:

 Twelfth Dividend Target

NextEnergy Solar Fund, a leading specialist investor in solar energy and energy storage, is pleased to announce the Board has approved a maintained dividend target of 8.43p per Ordinary Share for the financial year ending 31 March 2026.

The Board believes that this maintained dividend target appropriately balances the interests of the Company’s shareholders and other stakeholders with the Company’s available uses of capital. The Company’s dividend target offers an attractive c.12% dividend yield which is fully covered, representing one of the largest dividend yields in the FTSE 350 based on the Company’s closing share price on 14 May 2025.

The dividend target is forecast to be covered in a range of 1.1x – 1.3x by earnings post-debt amortisation, supported by a high degree of visibility of the Company’s revenues.  As of 15 May 2025, the Company’s forecasted total revenues for the year ending 31 March 2026 are 94% fixed through its RPI-linked government-backed subsidies and the Company’s active power hedging strategy.

 Irradiance across the period has been lower than we have seen in recent years, however, pleasingly the months that follow this quarter have benefited from excellent weather and we look forward to this being reflected in portfolio numbers in future updates. 

Having done your own research, you can only own trust the management until they are proved wrong, it could be market forces outside their control or they may have been too optimistic with their fcast

You may want to buy the yield but are still nervous because the yield is above the market average, so you could pair trade with a lower yielding Gilt or U$ Treasury, both are risk free if held until maturity.

If you had 10k to invest.

5k in NESF would provide yield of around 12%

5k in a government gilt, held withing a tax free wrapper.

A blended yield of 16%, so a yield 8% a year to re-invest back into your Snowball.

Helen Mahy, Chairwoman of NextEnergy Solar Fund Limited, commented:

“Geopolitics and macroeconomic events continued to create uncertainty over the quarter.  In addition, we have seen a reduction to short-term power prices which contributed to a slight reduction to the Company’s NAV over the Q4 period.  Despite this volatility, NextEnergy Solar Fund continues to show resilience as a company, and solar as a reliable and tested asset class.  The Board and the Company’s Investment Adviser meet regularly to discuss strategy and efficient discount control mechanisms to narrow the Company’s share price discount to NAV.  Maximising shareholder value and return remains a key priority and we are pleased that good progress has been made with the share buyback programme with the purchase of £3.4m worth of ordinary shares in the period.  Today, NextEnergy Solar Fund has also declared its fourth interim dividend bringing the total declared dividends for the financial year ended 31 March 2025 to 8.43p per Ordinary Share, in line with our guidance whilst being 1.1x cash covered, post amortisation of debt.”

Fourth Interim Dividend Declaration

NextEnergy Solar Fund, a leading specialist investor in solar energy and energy storage, is pleased to announce its fourth interim dividend of 2.11p per Ordinary Share for the quarter ended 31 March 2025.

The fourth interim dividend of 2.11p per Ordinary Share will be paid on 30 June 2025 to Ordinary Shareholders on the register as at the close of business on 23 May 2025.  The ex-dividend date is 22 May 2025.

This dividend announcement brings the total declared dividends for the financial year ended 31 March 2025 to 8.43p per Ordinary Share and represents the Company’s eleventh successive year of successfully meeting its dividend guidance.

Ross Grier, Chief Investment Officer of NextEnergy Capital said:

“Despite the current share price discount and a slight softening in NAV, NextEnergy Solar Fund’s portfolio of operational assets continues to perform in line with budget, providing a reliable and visible stream of cash flows from the sale of generated electricity.  Irradiance across the period has been lower than we have seen in recent years, however, pleasingly the months that follow this quarter have benefited from excellent weather and we look forward to this being reflected in portfolio numbers in future updates.  To date, NextEnergy Solar Fund has deployed approximately 11% of the UK’s total ground-mount solar operating capacity making it a key vehicle in helping to increase UK energy security whilst contributing heavily towards net zero goals.”

REGIONAL REIT Limited

(“Regional REIT”, the “Group” or the “Company”)

Q1 2025 Trading Update & Dividend Declaration

Regional REIT Limited (LSE: RGL), the regional property specialist, announces the following trading update for the period from 1 January 2025 to 31 March 2025 and a dividend declaration for the first quarter of 2025.

Stephen Inglis, Head of ESR Europe LSPIM Ltd., Asset Manager commented:

“I am pleased to report that Regional REIT has been able to maintain positive leasing momentum in the first quarter of the year and rent collections remained strong.

“There is an emerging supply and demand imbalance outside of London for high quality, sustainable office space that meets the needs of today’s occupiers. Regional REIT is committed to addressing this gap. This commitment gives us confidence that whilst market conditions continue to be challenging, with both occupational and investment markets remaining subdued, these challenges will subside allowing us to deliver future rental and capital growth for our shareholders.

 “Furthermore, with our transformed balance sheet, Regional REIT is well placed to take advantage of the significant opportunities ahead for value creation within the portfolio. The business is implementing these initiatives and will continue to pursue our strategic disposals programme. While the fruits of our efforts may not translate into our financial statements before 2026, the business is doing all the right things today operationally to deliver value to shareholders. In the meantime, we continue to reward our investors with an attractive covered dividend.”

Valuations across portfolio

·    125 properties, 1,244 units and 744 tenants, totalling c.£622.8m^* of gross property assets value (2024: £622.5m)

Continued operational delivery

·    Rent roll of £57.3m (2024: £60.7m); ERV £83.0m (2024: £83.2m)

·    EPRA Occupancy (by ERV) 78.8% (2024: 77.5%) ; 31 March 2025 like-for-like (versus 31 March 2024) EPRA occupancy was 78.8% (77.6%)

o EPRA Occupancy by portfolio segmentation: Core 88.5%, CAPEX to Core 80.8%, Value Add 63.3%, and Sales at 29.9%

·    Total rent collection for the quarter as at 1 May 2025 97.3% compared with 97.2% for the equivalent period in 2024

·    14 lettings to new tenants and renewals/regears in the period across 114,888 sq ft delivering £1.6m of annualised rental income

·    Post quarter end a further 7 new lettings and renewals/regears have been achieved across 21,673 sq ft providing £0.4m of annualised rental income

Maintaining balance sheet discipline while pursuing updated strategy

·    Progressing value accretive capex programme

·    Cash and cash equivalent balances £54.0m (2024: £56.7m)

·    Net loan-to-value ratio c. 42.0%^* (2024: 41.8%)

·    Gross borrowings £315.3m (2024: £316.7m)

·    Group cost of debt (incl. hedging) 3.4% pa (2024: 3.4% pa) -100% fixed and hedged ensuring the maximum cost of debt in 2025 will not exceed 3.4%

·    Disposals in the period amounted to £1.6m (before costs), 4.9% above pre-sale valuation and reflecting a net initial yield of 7.3%

·    2 disposals completed post quarter end totalling £6.2m (before costs), 2% below pre-sale valuation.

The current disposal programme comprises of 40 sales totalling c. £106.2m

·    1 disposal contracted for c. £2.5 million

·    3 disposals totalling c. £8.6 million under offer and in legal due diligence

·    5 further disposals totalling c. £8.9 million are in negotiation

·    19 further disposals totalling c. £41.7 million are on the market

·    12 potential disposals totalling c. £44.5 million are being prepared for the market.

^*Gross property assets value based upon Colliers valuations as at 31 December 2024, adjusted for subsequent acquisitions, disposals and capital expenditure in the period.

Capital expenditure programme update and highlights:

As previously announced the Company has identified c. 20 sites where there are clear value add opportunities. These may include planning applications being submitted to change the use to alternatives such as student accommodation, residential or hotel use ahead of a sale, to maximise value for shareholders. It is anticipated that this programme will deliver good shareholder value over the medium term.

In addition, currently the total capital expenditure investment amounts to £23.9m:

·    11 capital projects underway for £8.5m

·    9 projects scheduled to commence on-site works by the end of H1 ’25 for £6.4m 

·    10 projects that have been identified for £9.0m

Q1 2025 Dividend Declaration

The Company declares that it will pay a dividend of 2.50 pence per share (“pps”) for the period 1 January 2025 to 31 March 2025, (1 January 2024 to 31 March 2024: 1.20pps**). The entire dividend will be paid as a REIT property income distribution (“PID”).

£20k to invest ? A FTSE 100 share, ETF and investment trust to consider for a £1,940 second income
By Royston Wild

Businessman with tablet, waiting at the train station platform© Provided by The Motley Fool

Owning just a handful of stocks to achieve a second income is dangerous at the best of times. Right now, the risks are even greater, with trade tariffs cooling the global economy and putting corporate profits under strain.

Diversification across dozens or more companies means the negative impact from one or two dividend shocks won’t derail an investor’s entire income strategy.

Yet spreading capital across a broad mix of stocks doesn’t have to mean investors settle for poor returns. Indeed, a £20,000 lump sum invested equally in the following assets would yield an £1,940 passive income this year alone, if broker forecasts are accurate.

Here’s why this FTSE 100 share, an exchange-traded fund (ETF), and this investment trust could be great buys to consider for a second income.

The ETF

Dividend yield: 11.2%

The Global X SuperDividend ETF (LSE:SDIP) offers exceptional diversification in its own right. It holds shares in “100 of the highest dividend paying equities” spread across industries in both developed and emerging markets.

This GlobalX fund does lean more closely to US equities, with 29% of the fund tied up in Stateside stocks. This could leave it more vulnerable to regional issues than funds with greater global diversification.

But overall, I think it’s a highly attractive way to spread risk. I also like its long record of making monthly distributions, giving investors access to their dividend income sooner.

The investment trust

Dividend yield: 8.8%

Alternative Income REIT‘s (LSE:AIRE) designed to prioritise delivering reliable dividends to investors. Under real estate investment trust (REIT) rules, it must pay at least 90% of annual rental profits out this way.

Group profits here might be affected by adverse interest rate movements that depress asset values. However, I think this risk is baked into its low valuation (it trades at a 15% discount to its net asset value per share).

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

The FTSE 100 share

Dividend yield: 9%

Nearing double-digit percentages, the yield on Phoenix Group (LSE:PHNX) is the second highest on the FTSE index today.

Yet unlike many high-yield shares, this UK blue-chip offers large dividends that have proven sustainable over time. Indeed, its dividend yield has averaged 8.6% over the last five years.

As with any income share however, future dividends are never guaranteed, and especially large ones. Payouts here could disappoint if economic conditions weaken, for instance, damaging demand for its financial services.

Still, a strong shareholder capital coverage ratio of 172% provides this year’s dividend forecasts with substantial strength. Phoenix is a highly cash generative business, and I expect dividends to grow strongly over the long term as demographic factors drive retirement product demand.

Capital protection trusts: The perfect vehicle for nervous investors

12 May 2025

Annabel Brodie-Smith looks at the historic performance of these low-risk trusts. Are they really as good as they sound?

By Annabel Brodie-Smith

The Association of Investment Companies

Stock markets around the world have been thrown into chaos during the first few months of this year as investors reacted to Donald Trump’s volatile policymaking and, most recently, the tariffs he announced on ‘Liberation Day’ on 2 April. 

As a result, many investors are likely to have experienced some gut churning volatility and a significant hit to their portfolios since the new president took office. 

Indeed, it’s precisely this type of market mayhem that has dyed-in-the-wool cash savers wagging their fingers and chiding “that’s why I don’t invest in the stock market!”

However, there are a number of investment trusts that are designed specifically for nervous investors and volatile times like these; they aim to preserve the value of investors’ capital during market downturns while providing cash-beating returns when stock markets are rising.

In the wake of the recent market volatility, I decided to take a closer look to see if their claims stood up to scrutiny.

One of the most prominent funds is Capital Gearing Trust. Founded in 1973, it has been a steward of investors’ capital through booms and busts, market crashes, global economic crises and a pandemic. Despite these hurdles, since Peter Spiller started managing it in 1982, the trust has only lost money in two years, with the worst annual loss being 4% in 2022.

Even so, if you had invested £10,000 at launch you would now have £2.2m sitting in your portfolio today, and with very little stress along the way.

For some more recent context, let’s look at the period of tariff-induced volatility caused by Trump’s tariff announcements. In the four weeks between 2 April and 29 April, the average investment trust rose by 1.8%, although that figure masks a wide disparity; the average North America trust is down by 6.8% and the average China trust down by 9.8% in those four weeks alone, while the average trust in the Global sector was down by 3.4%. Yet Capital Gearing Trust was exactly unchanged.

Other wealth preservation trusts did emerge with profits, with Personal Assets Trust up by 0.59% and Ruffer Investment Company gaining 1.08%.

Analysing performance over more meaningful periods shows that wealth preservation trusts have successfully protected investors’ savings through market wobbles, busts, corrections and crashes. All while passing on at least some of the upside when stock markets are doing well. Indeed, even during times of extreme market stress such as the financial crisis or the Covid pandemic, some of these trusts actually made money.

So how do they do it?

The truth is that there is more than one way to build a resilient, gravity defying portfolio, and each of these trusts takes a different approach. The one thing in common is a diversified pool of assets, at least one segment of which is designed to rise in value when equities are having a tough time. That might be gold, bonds, derivatives or a combination of the three. Either way, they interact with the rest of the portfolio in a way that protects the bulk of investors’ capital.

Spiller explains his method of dividing Capital Gearing into three pots: “We put approximately one third in risk assets such as equities, another third in index-linked bonds and another third in cash or cash equivalents such as high-quality government bonds, which pay a better return than cash on deposit.

“The result has been remarkably consistent. We sailed through the dotcom crash in 2000 and made money when the markets crashed during the global financial crisis and again during the Covid downturn,” he said.

The trust is not bulletproof, however. “A really big fall in US equities could still hurt us and there are no guarantees we won’t lose money,” Spiller acknowledged. “But our long-term record of safely growing our investors’ savings speaks for itself.”

Ruffer Investment Company also focuses on capital preservation and has performed well in turbulent markets, said manager Jasmine Yeo. “The strategy retains a defensive bias with powerful protections but we’ve also got high conviction growth ideas and lots of liquidity to take advantage of the opportunities which volatility bring. We’re trying not just to preserve and grow capital in real market stress, but to use profits from our protections and other liquidity to buy assets to drive the next cycle of returns,“ she explained.

“Our approach has been successful in helping us to protect our clients through the dotcom bust, the credit crisis and Covid-19. The portfolio was defensively positioned going into ‘Liberation Day’ holding potent derivative protections that contributed meaningfully to performance as volatility spiked, offsetting the falls in the portfolio’s equities, while our yen and precious metals exposure allowed us to make positive headway.”

Personal Assets Trust takes a different approach, according to its manager, Sebastian Lyon – focusing on high-quality equities but avoiding the derivatives used by Ruffer. “All the wealth preservation trusts do things in different ways, so I see us as complementary rather than in competition,” he said.

“We dismiss a huge pool of equities because they are too cyclical, too high risk. If you look back through history and see the companies that tend to fall a lot in a recession, there is a theme: time and again it tends to be highly geared companies like retail banks, whether during the Asian currency crisis in 1997 or after ‘Liberation Day’; HSBC, Standard Chartered, Barclays – all went down by around 10% in April.

“That’s why we don’t own these stocks. Nor do we own companies reliant on receiving new capital such as housebuilders or airlines because when things go wrong, profits can collapse really sharply, like they did during Covid, and they are forced to ask for more money at the bottom of the market,” he explained.

“What do we own? Consumer staples. Unilever is our largest holding. It’s boring and predictable and we have held it for 20 years. We like to stick to the middle ground where companies have a tailwind. We have owned Microsoft for many years and we like Visa and Amex because there is a clear tailwind in the trend away from cash.”

Personal Assets also has 11% in gold and gold-related investments. “We love gold because it has risen during every crisis, providing a fantastic safe haven as we’ve seen recently as it has hit successive record highs,” Lyon said.

So take your pick. As you can see from the graphics, all of these trusts have done remarkably well over the long term, smoothing out returns at times of extraordinary volatility, and giving investors a more profitable, arguably less stressful alternative to cash. So for those who want to sleep at night whilst preserving the value of their nest egg, these trusts are most certainly worth considering.

Annabel Brodie-Smith is communications director at the Association of Investment Companies. The views expressed above should not be taken as investment advice.

The current blended minimum yield for the snowball is 7%.

If you wanted to buy a higher yielding Trust, you can remove some of the risk by Pair Trading with a less risky Trust.

Or, if you wanted to buy a less risky Trust, you could Pair Trade it with a higher yielding Trust.

Evidence suggests DIY pension investors are looking to strike a balance between stability and a few select growth opportunities. We look at the most popular SIPP investments right now.

(Image credit: Luke Chan via Getty Images)

By Laura Miller

Cash. Cash. Cash. The funds that made up the top three among Fidelity SIPP investors in April were all cash funds. The kind of funds investors pile into when they are worried about which way the wind is blowing.

And with April seeing sky high tariffs and trade wars emanating from the United States rocking stock markets around the world, the fear of a hurricane brewing has been intense.

Ed Monk, associate director at Fidelity International, says: “SIPP investors continue to prioritise stability with funds like the Royal London Short Term Money Market Fund and Legal & General Cash Trust holding prominent positions.

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“These cash and money market funds are sought after in times of uncertainty due to their ability to preserve capital and offer liquidity.”

This aligns with recent research from Fidelity which shows a marked shift towards caution, with 41% of investors now describing their outlook on the market as ‘pessimistic’, up from 24% in February.

At the same time, heading up the investment trust chart during the period was GCP Infrastructure Investments and International Public Partnerships, taking first and second place respectively – both infrastructure investments, as even SIPP investors not choosing cash funds retreated to cash-like safety.

“The popularity of cash funds and infrastructure trusts shows a clear preference for defensive strategies in uncertain markets,” says Monk.

Likewise that old favourite in troubled times, gold. Gold’s performance in 2025 underscores its value as a safe haven, with the Ninety-One Global Gold Fund climbing into the top holdings among SIPP investors in April.

Fidelity’s research also supports this, revealing 28% of investors now see gold as a key opportunity. “The growing interest in gold reflects the broader trend of investors looking for assets that can provide both safety and long-term value,” Monk says.

Yet SIPP investors are striking a balance between stability and selective growth opportunities. While not as popular as cash and infrastructure, global equity and index funds held their own in the top 10, showing investors’ ongoing appetite for diversification.

“We’re seeing selective interest in growth sectors, with funds like the Fidelity Index World Fund and Allianz Technology Trust attracting attention, showing that there’s still room for optimism in certain areas of the market,” says Monk.

Finally, the return of Scottish Mortgage Investment Trust to the top ranks suggests that some investors are cautiously dipping back into the growth space.

But, says Monk, that is occurring with a keen eye on balancing these exposures with more defensive holdings elsewhere.

Most popular SIPP investments

Fund	Shares	Investment trusts
Royal London Short Term Money Market Fund	BP	GCP INFRASTRUCTURE INVESTMENTS LTD
Legal & General Cash Trust	HSBC HOLDINGS PLC	INTERNATIONAL PUBLIC PARTNERSHIP
Fidelity Cash Fund	LEGAL & GENERAL GP	ALLIANZ TECHNOLOGY TRUST PLC
Fidelity Multi Asset Alloc Growth W-Acc	GLENCORE PLC	JPMORGAN GLOBAL GROWTH & INCOME PLC
Fidelity Index World Fund	DIAGEO PLC	SDCL ENERGY EFFICIENCY INC TST PLC
BNY Mellon Multi-Asset Balanced Fund	M&G PLC	F&C INVESTMENT TRUST PLC
Fid FIF Global Dividend Fund	ASHMORE GROUP	CQS NEW CITY HIGH YIELD FUND LTD
Legal & General Global Equity Index Fund	ABERDEEN GROUP PLC	SCOTTISH MORTGAGE INV TRUST
Ninety One Global Gold Fund	GREATLAND GOLD	POLAR CAPITAL TECHNOLOGY TRUST PLC
Fidelity Global Aggregate Bond Feeder Fund	BURBERRY GROUP	LAW DEBENTURE CORP

Source: Fidelity International Personal Investing Platform Net SIPP sales 01.04.25-29.04.25