Top 10 investment company sectors over H1 2020

Technology & Media was the top-performing investment company sector over the first half of 2020, new data from the Association of Investment Companies (AIC) can reveal. The sector which invests in technology businesses whose services have been a lifeline through lockdowns around the world generated an impressive return of 29%.

Hedge Funds came second, benefitting from the market volatility of the past few months to return 27%. Completing the top three is Biotechnology & Healthcare, up 16% reflecting demand for healthcare equipment and treatments worldwide to combat COVID.

Whilst the average investment company was down 6% over the first half of the year, long-term performance remains strong with a gain of 170% over the past ten years.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “The first half of 2020 will be remembered for one thing, but whilst COVID has put huge pressure on health and livelihoods there have still been areas of strong performance, particularly given the rally of the past few months. Our Technology & Media sector is up 29%, reflecting the central role technology has played in our lives in recent months. Whether it’s watching Netflix, chatting on Zoom or keeping in touch with colleagues on Microsoft Teams, technology has been instrumental in helping us all keep going through lockdown.

“Investment companies in the Hedge Funds sector have achieved exactly what they set out to do, namely preserving capital during tough times and providing diversification to portfolios by investing in long and short equity positions as well as other more esoteric assets. Given the global effort to fight COVID, it’s no surprise that the Biotechnology & Healthcare sector is in the top performers too.

“It’s always interesting to look at the best-performing companies and sectors at the end of a half-year period, but it’s important to remember that investment is about the long term. Investors should have a balanced portfolio which suits their needs and if they have any concerns they should speak to a financial adviser.”