A significant portion of the FTSE 250 comprises investment trusts, allowing investors to create diverse and high-quality portfolios. In April, two investment trusts stand out as noteworthy options for investors.
Top 2 FTSE 250 Investment Trusts to Watch in April
1. Schiehallion Fund (LSE:MNTN)
The Schiehallion Fund is a recent addition to the FTSE 250, joining the index in March. Despite having experienced over a 100% increase in the past year, it still remains 36% below its peak values from 2021. This investment trust, managed by Baillie Gifford, specializes in later-stage growth companies that have not yet gone public.
Key holdings in the fund include significant names like SpaceX, ByteDance (owner of TikTok), and Stripe, as well as Claude AI developer Anthropic. The fund’s selectivity is noteworthy; in 2024, it made only six new investments after reviewing over 600 financing rounds.
- First Half 2025 NAV Growth: 9.9%
- Major Investments:
- SpaceX
- Bending Spoons
Unlike many funds, Schiehallion continues to hold shares in companies that have gone public, such as Wise and Affirm, allowing it to benefit from long-term growth. However, potential rising interest rates could negatively impact growth stock valuations.
2. Finsbury Growth & Income Trust (LSE:FGT)
Finsbury Growth & Income Trust primarily invests in UK shares, though it has struggled recently. Since January 2025, it has seen a decline of 25%, and over the past five years, it has dropped 17.5%, significantly trailing the FTSE All-Share index. Fund manager Nick Train’s stock-picking has faced scrutiny due to several poor-performing holdings, including Diageo and Burberry.
The trust has also been affected by a downturn in the software sector, holding companies like Sage and Experian. Despite these challenges, many stocks within the fund appear undervalued.
- Valuation Metrics:
- Sage: Trading at 15 times next year’s earnings
- Autotrader: Trading at 12.3 times
- Trust Discount: 7.3% discount to NAV
- Dividend Yield: 2.8%
Considering the potential for improvement in key holdings, Finsbury could present a valuable opportunity for investors looking near the 725p mark.
Both Schiehallion Fund and Finsbury Growth & Income Trust reflect distinct investment approaches within the FTSE 250. While Schiehallion focuses on emerging growth opportunities, Finsbury offers a contrarian view on undervalued UK shares. These options merit attention for those looking to enhance their investment strategies in April.
