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Top performing investment company sectors over 2018

11 December 2018

Biotechnology and healthcare tops the list.

Sector Specialist: Biotechnology & Healthcare was the top-performing investment company sector over the year to 30 November, data from the Association of Investment Companies (AIC) can reveal. The sector which invests in ground-breaking medical innovations produced a return of 16.9%.

The remaining sectors in the top five all invested in alternative assets. Sector Specialist: Leasing was the second-best performer returning 11.2% followed by Sector Specialist: Infrastructure up 9.5%, Sector Specialist: Infrastructure – Renewable Energy up 8.2% and Hedge Funds up 6.3%.

The top 10 performing sectors featured an equal split of five sectors investing in equities and five investing in alternative assets.

Top 10 investment company sectors 1 January to 30 November 2018 - % share price total return

Duration (years)

YTD

1

3

5

10

AIC sector

 

 

 

 

 

Overall weighted average ex VCTs.

1.34

3.33

43.91

72.92

359.36

Sector Specialist: Biotechnology & Healthcare

16.85

18.96

71.67

127.23

548.70

Sector Specialist: Leasing

11.15

11.40

26.81

49.05

 

Sector Specialist: Infrastructure

9.54

14.14

33.83

77.36

225.94

Sector Specialist: Infrastructure - Renewable Energy

8.18

13.10

36.86

60.23

 

Hedge Funds

6.33

1.16

24.03

34.91

203.36

Sector Specialist: Environmental

5.70

7.18

69.38

   

North American Smaller Companies

5.47

9.24

48.58

84.05

467.59

North America

5.47

12.14

70.09

92.84

344.22

Private Equity

5.19

1.92

78.13

143.11

323.31

Global

4.52

5.98

63.77

105.86

445.44

VCT sectors

It was a strong year for VCTs with the average VCT returning 4% over the year to 30 November despite the recent market turbulence. The best-performing VCT sector was VCT Specialist: Technology which returned 21.9% followed by VCT Generalist up 4.6%.

Top performing VCT sectors 1 January to 30 November 2018 - % share price total return

Duration (years)

YTD

1

3

5

10

AIC sector

         

VCT only weighted average

3.98

3.62

20.57

44.18

149.2

VCT Specialist: Technology

21.86

30.34

48.63

58.78

146.88

VCT Generalist

4.58

4.73

19.51

42.91

143.72

VCT Specialist: Environmental

0.75

2.55

23.93

58.15

 

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC) said: “Biotechnology & Healthcare was the top-performing investment company sector over the year so far with an impressive return of 17%. Whilst it’s the best performer this year, the sector also has an impressive track record over longer periods with a return of 110% over five years and 526% over ten years.

“It has been a tricky year for markets with the strong rally earlier on giving way to a downturn. The average investment company is up 1.3% over the year. Whilst this is more muted than last year, it has outperformed both the average open-ended fund and the FTSE All-Share which lost 2.6% and 6% respectively. It’s always interesting to look at the best performing companies at the end of the year, but it’s important to remember that investing should be for the long term and this is what matters most.”

-Ends-

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Notes

  1. Data source: AIC/Morningstar.
  2. Year-to-date performance is % share price total return from 1 January – 30 November 2018.
  3. Discrete % annual returns - % share price total return (table below).
  4. Open-ended fund performance is IA OE total. Source: AIC/Morningstar.
  5. 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 mission statement is to help members add value for shareholders over the longer term. The AIC has 355 members and the industry has total assets of approximately £182 billion.
  6. 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.
  7. To stop receiving AIC press releases, please contact the communications team.
 

01/12/2017 - 30/11/2018

01/12/2016 - 30/11/2017

01/12/2015 - 30/11/2016

01/12/2014 - 30/11/2015

01/12/2013 - 30/11/2014

Duration (years)

1

1

1

1

1

Overall investment company weighted average ex VCTs

2.53

19.72

14.35

5.12

10.63

Sector Specialist: Biotechnology & Healthcare

18.95

27.60

6.63

7.86

21.65

Sector Specialist: Leasing

9.93

1.89

8.79

2.63

1.86

Sector Specialist: Infrastructure

13.53

5.34

11.44

7.98

17.39

Sector Specialist: Infrastructure - Renewable Energy

12.58

5.61

11.13

3.06

8.68

Hedge Funds

1.40

2.67

-15.01

-9.94

3.21

Sector Specialist: Environmental

5.20

20.61

29.87

3.60

3.72

North American Smaller Companies

8.83

9.91

22.60

13.56

10.31

North America

7.63

13.21

25.73

-2.06

14.10

Private Equity

0.24

27.30

34.00

11.87

19.95

Global

5.98

31.37

17.69

7.39

16.35

VCT only weighted average

3.60

8.72

6.10

7.44

9.76

VCT Specialist: Technology

30.32

3.66

-4.00

34.92

-8.55

VCT Generalist

4.76

6.70

6.98

6.64

11.16

VCT Specialist: Environmental

2.37

8.87

11.34

7.23

17.48

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Media enquiries

Annabel Brodie-Smith
Communications Director
Tel: 020 7282 5580
annabel.brodie-smith@theaic.co.uk
@annabelbrodies
@aicpress

Elmley de la Cour
Communications Manager
Tel: 020 7282 5583
elmley.delacour@theaic.co.uk
@aicpress

William Sanderson
Communications Executive
Tel: 020 7282 5584
william.sanderson@theaic.co.uk
@aicpress