Investment Trust Show: Meet two standout performers

This bonus episode of the AJ Bell Money & Markets podcast dives into standout performers in the investment trust space, spotlighting Temple Bar Investment Trust's exceptional 45% share price return and 33.9% total return in 2025, driven by strong UK financial sector exposure and undervalued holdings. Host Dan Coatsworth and Hannah Williford explore why UK markets are regaining investor confidence, citing attractive dividend yields, aggressive share buybacks, and compelling valuations relative to global peers. They also examine the growing influence of activist investor Saba Capital, which is pushing for change at trusts like Impax and Edinburgh Worldwide through tender offers, sparking debate over governance and retail investor participation. The episode features in-depth interviews with Job Curtis of City of London Investment Trust, who draws parallels between current Middle East tensions and the 1990 Gulf War, and Eve Maddock-Jones, who discusses how investment trusts are modernizing their outreach to retail investors through podcasts and social media—though with mixed success. The segment on renewable energy trusts highlights a painful paradox: high dividends but weak share prices, prompting Next Energy Solar to cut its dividend by 50% to fund growth. Finally, Tom Sieber speaks with Nish Patel and George Cook about promising opportunities in global and European small-cap markets, emphasizing quality, resilience, and inflation-proof business models. Overall, the episode paints a picture of a sector in transition—balancing tradition with innovation, discipline with activism, and long-term value with short-term volatility.