Two Top FTSE 250 Investment Trusts to Consider for Your SIPP

When it comes to building a well-rounded Self-Invested Personal Pension (SIPP), investment trusts are an increasingly popular choice. The FTSE 250 index, consisting of mid-sized companies listed on the London Stock Exchange, offers a range of investment opportunities that balance growth potential with risk. Here, we highlight two top FTSE 250 investment trusts that could provide long-term benefits for those looking to bolster their SIPP portfolio.

Baillie Gifford US Growth Trust (LSE:USA)

For investors seeking exposure to the high-growth U.S. market, the Baillie Gifford US Growth Trust stands out as a solid option. The trust is designed to capitalize on the growth of U.S.-based companies, particularly those in the technology and healthcare sectors. Baillie Gifford’s active management style focuses on finding innovative companies with strong potential for long-term growth.

The trust primarily invests in large-cap U.S. companies but also provides a unique opportunity for exposure to private companies through its ability to allocate up to 50% of its assets in unlisted businesses. This gives investors the chance to participate in the early-stage growth of promising companies before they hit the public markets. With a focus on high-growth sectors like technology and biotech, this investment trust offers significant upside potential for a SIPP investor willing to embrace a growth-focused strategy.

Despite the high-risk nature of its investments, the Baillie Gifford US Growth Trust has performed strongly over the years, making it an attractive choice for those looking to add high-growth, U.S.-focused equities to their pension portfolio.

Fidelity Special Values (LSE:FSV)

For those looking to diversify within the UK market, Fidelity Special Values offers a compelling alternative. This actively managed investment trust focuses on undervalued UK companies with the potential for long-term recovery and growth. Managed by Fidelity International, the trust takes a contrarian approach, seeking out stocks that are trading below their intrinsic value but have strong potential for improvement.

Fidelity Special Values focuses on a diversified range of sectors, including industrials, financials, and consumer goods, allowing it to tap into various growth opportunities within the UK economy. The trust is particularly appealing for SIPP investors looking for exposure to undervalued stocks, which may be primed for a rebound.

While the trust’s focus on value stocks may not provide the same explosive growth potential as a growth-focused trust, its approach offers stability and resilience, particularly for investors seeking to balance risk and reward in their retirement portfolio.

Conclusion

Both Baillie Gifford US Growth Trust and Fidelity Special Values offer compelling reasons to consider them for your SIPP. Whether you are looking for exposure to high-growth U.S. technology and healthcare sectors or undervalued UK companies poised for recovery, these investment trusts provide diverse strategies that could enhance your long-term retirement goals. As with any investment, it is important to assess your personal risk tolerance and financial objectives before adding them to your SIPP portfolio.