Top performing investment company sectors over 2019

Technology & Media leads the way

Listing image

Technology & Media 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 produced an impressive return of 34% over the year so far, compared to the average investment company return of 14% over the same period.

As interest in sustainable investing continues to rise, companies in the Environmental sector delivered the second-highest return of 30%. Placed third and fourth, the UK All Companies and UK Smaller Companies sectors also delivered impressive returns, 27% and 26% respectively, showing that the UK has been a rewarding region for investors during a time of intense political uncertainty.

 

Top 10 investment company sectors by % share price total return from 1 January to 30 November 2019

AIC sector

Year
to date

1
year

3
years

5
years

10
years

 

Overall weighted average ex. VCTs

14.15

9.84

32.88

59.11

201.1

1

Technology & Media

34.33

24.36

N/A

N/A

N/A

2

Environmental

29.58

21.33

53.13

N/A

N/A

3

UK All Companies

26.93

20.06

43.56

66.82

237.58

4

UK Smaller Companies

26.09

20.56

57.50

81.07

358.83

5

Hedge Funds

25.67

18.05

22.13

14.47

86.65

6

Global Smaller Companies

25.44

16.86

48.7

108.75

332.76

7

Europe

23.42

15.85

50.61

67.02

191.15

8

North America

23.27

11.19

35.05

71.70

248.20

9

Japan

22.65

9.27

43.81

107.16

308.64

10

Private Equity

22.60

16.94

32.63

83.75

293.66

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “Political uncertainty, trade wars and worries about an economic slowdown have been on investors’ minds all year. So it’s good to see the average investment company delivering a healthy 14% return.

“Despite the lack of clarity surrounding Brexit, the UK sectors have delivered strong returns. And as more investors have become interested in ESG investing, it’s encouraging that the Environmental sector has performed well, with a return of 30% since January.

“Although it’s always interesting to look back at the best performing companies at the end of the year, it’s important to remember that investing should be for the long term and past performance is not an indicator of future returns. Investors need a balanced portfolio and the investment company industry offers a broad variety of sectors, regions and risk profiles to match these needs. Investors should also consider their objectives and the level of risk they are willing to take when looking at potential investments and, if they have any concerns, should speak to a financial adviser.”

-Ends-

Follow us on Twitter @AICPRESS

Notes

  1. Data source: AIC/Morningstar. Sectors are weighted averages. Year-to-date performance is % share price total return from 1 January to 30 November 2019
  2. The table below shows discrete annual % share price total returns for 12-month periods to 30 November.

    Performance from
    Performance to

    01/12/2018
    30/11/2019

    01/12/2017
    30/11/2018

    01/12/2016
    30/11/2017

    01/12/2015
    30/11/2016

    01/12/2014
    30/11/2015

    Overall investment company weighted average ex VCTs

    9.66

    2.35

    18.36

    13.69

    3.35

    Technology & Media

    24.36

    N/A

    N/A

    N/A

    N/A

    Environmental

    21.33

    4.96

    20.24

    24.85

    N/A

    UK All Companies

    20.06

    -6.65

    27.39

    -1.98

    18.01

    UK Smaller Companies

    20.56

    -3.69

    34.37

    -5.70

    18.92

    Hedge Funds

    18.05

    5.45

    -3.14

    -2.16

    -4.98

    Global Smaller Companies

    16.86

    2.52

    26.62

    14.72

    13.78

    Europe

    15.85

    -4.14

    35.42

    0.66

    9.98

    North America

    11.19

    9.10

    12.24

    31.05

    -5.16

    Japan

    9.27

    -3.51

    35.98

    18.03

    22.65

    Private Equity

    16.94

    4.82

    19.98

    27.69

    7.36
  3. 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 362 members and the industry has total assets of approximately £199 billion.
  4. 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.
  5. To stop receiving AIC press releases, please contact the communications team.