Top-performing investment company sectors in 2022

Commodities & Natural Resources is the top-performing sector this year, new data from the Association of Investment Companies (AIC) has revealed. The sector produced a return of 26% over the 11 months to the end of November compared to the average investment company return of -15% over the same period.

The Leasing sector achieved the second-highest return of 14%, while the Global Equity Income sector and Renewable Energy Infrastructure sector came third and fourth, both delivering a 7% return. The other two sectors to deliver a positive return in a difficult year were Hedge Funds (3%) and Debt – Direct Lending (1%).

Ten best-performing sectors in the year to date

Source: theaic.co.uk & Morningstar. N/A means there is no performance history for this period. Excludes VCTs. * Year to date = 11 months to 30 November 2022.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “It’s been a tough year for investment companies with high inflation and rising interest rates, fuelled by the war in Ukraine, and political uncertainty dominating markets. The best-performing sectors are Commodities & Natural Resources, a clear beneficiary of inflation, and Leasing, where companies leasing aircraft have recovered from a low base during the pandemic.

“In a year overshadowed by a global energy crisis and increasing alarm about climate change, it’s understandable that the Renewable Energy Infrastructure sector was one of the top performers. The Global Equity Income sector has performed strongly for income seekers and Hedge Funds is the fifth best performing sector, with volatile markets being helpful to many strategies.

“Though this year’s top-performing sectors tell an interesting story, it’s very specific to the market and economic conditions of 2022. It’s important to remember that investment is about the long term. Building a balanced portfolio of investments which suits your needs, rather than just focusing on today’s winners, is what’s most important.”

Ten best-performing investment companies in the year to date

Source: theaic.co.uk & Morningstar. N/A means there is no performance history for this period. Ordinary share classes only. Excludes VCTs and companies undergoing liquidation. * Year to date = 11 months to 30 November 2022.

The ten best-performing investment companies are dominated by the Commodities & Natural Resources and Leasing sectors. DP Aircraft I was the best performing investment company, up 167% over the 11 months to 30 November. It is followed by Doric Nimrod Air Three, up 70% and Doric Nimrod Air Two, up 66% over the same period.  The Renewable Energy Infrastructure sector and Private Equity sector also feature in the ten best performers.

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Notes to editors

1. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment.  Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s vision is for closed-ended investment companies to be considered by every investor. The AIC has 353 members and the industry has total assets of approximately £263 billion.
2. For more information about the AIC and investment companies, visit the AIC’s website.
3. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance.  The value of investment company shares, and the income from them, can fall as well as rise.  You may not get back the full amount invested and, in some cases, nothing at all.
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