Corporate activity among investment trusts hit record levels in 2025, with 26 mergers, acquisitions, and liquidations completed this year to date, the Association of Investment Companies (AIC) has revealed.

Surpassing the previous record of 24, which was only set last year, there were five mergers, seven acquisitions, and 14 liquidations in 2025.

Share buybacks also reached record levels in 2025 with £9.76bn, beating the previous record of £7.51bn, which was also set last year.

The sectors with the most buybacks were global (£2.76bn), biotechnology & healthcare (£726m), and UK smaller companies (£582m).

Discounts narrowed over the year, with the average investment trust discount (excluding 3i) standing at 12.9 per cent, down from 15 per cent at the end of 2024.

Investment trusts’ total assets were almost the same as last year, closing November with £268.7bn compared to £268.62bn at the end of last year.

Fundraising by existing investment trusts totalled £449m, led by trusts in the debt – loans & bonds sector raising £180m.

TwentyFour Income Fund raised the most over the year with £79m, while the only IPO was Achilles Investment Company, which raised £54m.

“This year investment trusts have continued to reshape themselves to meet investors’ needs, with the pace of mergers, acquisitions and liquidations in the sector showing no sign of slowing,” said AIC chief executive, Richard Stone.

“In addition, the number of investment trusts changing their fees to benefit investors is the highest since 2019. This all demonstrates how investment trust boards are working hard to deliver value for their shareholders.”

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