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There are dozens of investment trusts across the FTSE 250, offering exposure to all sorts of sectors and geographies. Here are two that I think are worth considering for a SIPP. In this account, they would have time to compound and — ideally — generate solid long-term returns.
US growth
First up is Baillie Gifford US Growth Trust (LSE: USA), which pretty much does what it says on the tin.
However, what separates this from similar trusts is the ability to invest up to 50% of assets in private growth companies. Today, unlisted firms make up 37% of the portfolio.
Admittedly, this adds extra risk because these can be harder to value. Also, by definition, they tend to be less mature enterprises, meaning there’s greater risk of some going bust.
However, the trust only needs to back a small handful of generational private companies to do well long term. One is SpaceX, the rocket and satellite internet pioneer that is today the largest holding. It’s up tenfold in value since 2018!
Beyond this, the trust is invested in loads of top-tier public companies that I expect to be larger in future. These range from internet payments firm Stripe to streaming juggernaut Netflix and language learning leader Duolingo. Other tech names include Amazon and Meta.
Just as the US led the way during the rise of the internet, it is doing so again with generative AI. We think this new technology is consequential and will usher in a period of change on a scale that we haven’t seen since the industrial revolution.
Baillie Gifford US Growth, January 2025
The trust’s shares are currently trading at an 8% discount to net asset value, which I think looks attractive. It continues to buy back shares in an attempt to control the discount.
Asia growth
The second trust is another from Baillie Gifford, namely Pacific Horizon Investment Trust (LSE: PHI). The managers aim to invest in the top 20% of the fastest-growing companies in Asia.
Now, words like ‘Pacific’ and ‘Asia’ might immediately ring alarm bells because of all the uncertainty around global trade. The trust has 31% invested in China, the world’s second-largest economy, and another 9% in Vietnam. Both could be hit hard by US tariffs, assuming they stay punishingly high.
That said, now is arguably a great time to consider investing for the long run. Asian companies and economies are still likely to become much more influential in future, despite President Trump’s best efforts.
Just look at China’s BYD (not a holding), which is overtaking Tesla in selling EVs. Or Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading maker of advanced chips. It is Pacific Horizon’s largest holding. I doubt such firms’ upwards trajectory will be permanently impaired by US tariffs.
Combining Asia’s favourable macroeconomic position with its structurally faster growth rates and valuations at multi-year lows relative to developed markets, Asia ex Japan appears to be in a sweet spot.
Pacific Horizon, March 2025
Pacific Horizon also offers exposure to India (16.8%) and Korea (10.6%), as well as strategically important firms like Zijin Mining (one of China’s largest producers of gold and copper).
Again, the shares trade at a discount to NAV (9.2%). I think they’re worth a look for a SIPP.
