November was a more volatile month for equities. Smaller companies still managed to deliver a modest return and outperformed larger companies in the month. The strongest performing sectors were healthcare, basic materials and consumer staples. The laggards were telecommunications, technology and consumer discretionary. Economic data points in Japan and the emerging markets were ahead of expectations whilst those in North America, the UK and Europe were behind according to the Citi economic surprise index. In the US, a weaker trend to the economic data
that was available after the government shutdown raised the probability of a further interest rate cut in December. This helped stocks to recover after concerns earlier in the month about elevated valuations of companies in the artificial intelligence sector. To improve the country’s fiscal position, the UK government revealed a wide range of tax increases in its Budget. Whilst most government bond yields traded in a range, Japanese yields rose significantly in the month as market participants anticipated an interest rate hike by the Bank of Japan.
The Trust’s net asset value (NAV) was down -0.4% in November, underperforming the benchmark’s gain of 0.4%. The discount to NAV narrowed in November.
In North America, our portfolio underperformed the local index. Positive contributors included Wheaton Precious Metals, which announced a new streaming agreement and rallied with the gold price. Outsourcer Genpact delivered good results and raised its sales guidance for the year. Kirby received an upgrade from a broker because of good prospects in the company’s power business. Negative contributors included engineering services company WSP Global, which lowered its guidance for revenue growth for the year because of weakness in the company’s Asia-Pacific division. Grand Canyon Education fell because of industry-wide concerns over the future availability of funding for nursing programs. GXO Logistics slipped as a recent earnings report revealed volumes that were slightly lower than expected.
The UK portfolio was behind its benchmark. GlobalData benefitted from the introduction of a share-repurchase program. An acceleration in organic sales growth led to good results and a broker upgrade for Kainos. Shawbrook gave a positive update on the company’s prospects for the final quarter of the year. Negative contributors included Paypoint, where management pushed out the timing of achieving its medium-term profit goal. Chemring fell with the sector and saw lower than expected orders in the company’s Roke division. Video games developer Everplay was the
subject of profit taking.
The European portfolio outperformed its benchmark. Outperformers in the portfolio included Bank of Ireland, where the prospect of an acceleration in net interest income growth led brokers to upgrade their forecasts. For De’Longhi, strong revenue growth led to good results and an upgrade to management’s sales and profits guidance. CTS Eventim saw a good recovery in its live entertainment business and that led to better than expected results. Detractors to performance included R&S Group, where the company lowered its medium-term sales and profitability guidance because of higher investment costs and capacity constraints at its customers. Karnov drifted lower with the information services sector. Defence company Renk fell back on the latest attempts to secure a peace deal between Russia and Ukraine.
The Japanese portfolio underperformed the MSCI Japan Small Cap index. Positive contributors included Open House, which revealed an encouraging outlook for apartment sales in the coming financial year. Nishi-Nippon Financial announced a greater than expected increase in its dividend. Nomura Real Estate rose with the sector. In terms of detractors, industrial company IHI fell on profit taking. M-up Holdings declined as the company’s revenue and profit forecasts for the financial year were below expectations. Kakaku.com saw higher advertising costs impact its
profits.
In totality, the Rest of World fund holdings outperformed the strong gains of the MSCI AC Asia ex Japan Small Cap index. This was driven by the outperformance of the Utilico Emerging Markets Investment Trust and the Schroders Global Emerging Markets Smaller Companies fund. Gains were partially offset by the underperformance of the Scottish Oriental Smaller Companies Investment Trust and the Pinebridge Asia ex Japan Small Cap fund.
As at 31 November 2025
Investment risks
The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The mention of any stocks and bonds is not a recommendation to deal. All information is sourced from Columbia Threadneedle Investments, unless otherwise stated.
Issued by Columbia Threadneedle Management Limited and approved for distribution 18/12/2025.
Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions and the relevant Key Information Documents (“KID”) before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.
