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High risk funds and trusts for when the market stabilises

Trustnet

By Patrick Sanders, Reporter, Trustnet, 23 April 2025:

Donald Trump’s indecision on everything from tariffs to whether he is going to fire Federal Reserve chair Jerome Powell is giving investors whiplash, causing volatility and uncertainty. Some investors have responded by pulling back and favouring more cautious assets such as gold or bonds.

But this is not the case for everyone. While some have become more risk averse, Alex Watts, senior analyst at interactive investor, said other investors are doubling down, believing that there are opportunities to be found due to weaker valuations.

Below, experts identify the high-risk investment trusts and funds that might suit investors who believe now is the time to be more adventurous..

Vietnam Holding

Matthew Read, senior analyst at QuotedData, pointed to Vietnam Holding Limited. Despite Vietnamese equities experiencing a “short dislocation” following the announcement of tariffs, Vietnam still has “one of the most attractive macro backdrops in emerging markets”, that the trust is positioned to take advantage of, Read said.

In response to the recent wave of tariffs and “short-term dislocation in Vietnamese equities”, it has remained nimble. Since Liberation Day, it has trimmed its exposure to exports and increased its focus on domestic companies, banks and retail, which are less susceptible to global market volatility, Read said.

These domestic businesses benefit from Vietnam’s macro tailwinds and “already high growth story”, such as ongoing infrastructure reforms, ambitious GDP targets and a young and dynamic population.  The strategy has done very well over the past five years, beating the MSCI Emerging Markets Asia index by 110 percentage points.

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