3 expert-picked Investment Trusts for recession

There were winning Investment Trusts in 2022, but it would’ve taken a skilled investor to choose Latin America, energy infrastructure or insurance as their top sectors at the start of the year. From the war in Ukraine to rocketing inflation to a febrile political climate, 2022 had its fair share of surprises. Investors will be hoping for a more predictable year in 2023.

That said, many of us are struggling to find reasons to be excited about the year ahead. The economic outlook is poor – despite a smidgen (0.1%) of temporary growth in November thanks to the World Cup - with recessions likely across most major economies. And it’s not as if most investors don’t know this. In fact, it’s difficult to find a single economist who predicts a different outcome. With the average investment trust down over 15% for the year to date, it’s plausible that markets are already at, or near, the bottom.

So if the writing for ‘recession’ is well and truly on the wall by now, which Investment Trusts can you incorporate into your portfolio to help you sail through it as smoothly as possible? We've put together 2 Investment Trusts to see you through a recession and asked Gavin Haynes, Consultant at Fairview Investing, to tell us his top pick. Scroll down to find out!

Capital Gearing Trust

With £1.3bn in assets, the Capital Gearing Trust is a well-established choice for investors looking for recession-proof additions to their portfolio. Under the 40-year stewardship of Chief Investment Officer Peter Spiller, it's recorded just one year in the red – during the height of the Covid pandemic no less. It’s run to deliver a positive, inflation-adjusted return in all market conditions.

In their annual report at the end of Q4, Capital Gearing Trust drew attention to minutes from the Federal Open Market Committee (FOMC) on 13-14 December, citing...