The Technology & Technology Innovation sector was the best performing sector in the first half of 2024, according to data from the Association of Investment Companies (AIC). The tech sector produced a return of 28% over the six months to the end of June 2024, while the average investment trust returned 8% over the same period.
The Growth Capital sector generated the second highest return of 22%, while the Private Equity sector came third with a return of 21%. The fourth best performing sector was the Leasing sector which returned 17% and the North America sector was fifth, returning 14%.
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Ten best performing investment trust sectors in H1 2024
| AIC sector | % Share price total return | ||||
| H1 2024 | 1 yr | 3 yr | 5 yr | 10 yr | |
| Average trust ex VCTs | 7.72 | 18.06 | 8.04 | 46.75 | 170.81 |
| 28.03 | 49.96 | 37.92 | 144.89 | N/A | |
| Growth Capital | 21.53 | 27.89 | -60.52 | -44.53 | N/A |
| Private Equity | 20.79 | 45.04 | 110.74 | 155.06 | 549.65 |
| Leasing | 17.20 | 24.79 | 85.62 | 7.13 | 81.34 |
| North America | 13.78 | 39.38 | 35.07 | 160.67 | 247.69 |
| India/Indian Subcontinent | 13.47 | 31.42 | 46.05 | 50.78 | 176.74 |
| Asia Pacific Equity Income | 11.68 | 12.21 | 2.76 | 21.85 | 104.06 |
| Global | 9.76 | 25.58 | -9.82 | 56.68 | 241.49 |
| Asia Pacific | 9.31 | 11.62 | -10.14 | 31.33 | 142.51 |
| Debt – Structured Finance | 9.26 | 18.29 | 24.63 | 33.39 | 77.07 |
Source: theaic.co.uk / Morningstar. Share price total return in % to 30/06/24. N/A means there is no performance history for this period. Ordinary share classes only. Excludes VCTs. See AIC sector definitions.
Annabel Brodie-Smith, Communications Director of the AIC, said: “After two challenging years, investment trust performance has bounced back strongly in the first half of 2024. Many headwinds remain including uncertainty over prominent elections, continuing conflicts and damaging cost disclosure regulation but cooling inflation, the prospect of interest rate cuts and resilient growth are helping many investment trusts deliver strong performance.
“The has continued to perform strongly with the dramatic rise of artificial intelligence driving the performance of the Magnificent Seven in the US. The Growth Capital sector, which invests in unquoted companies, has come back strongly this year, with Seraphim Space’s stratospheric performance making it the top performing trust. And the Private Equity sector, which was the best performing sector last year, has continued to do well in 2024.
“It’s interesting to look at the short-term winners, but it’s important to remember that investment is all about the long term. Investors need to build a well balanced portfolio of investments which meets their needs over time.”
Ten best performing investment trusts in H1 2024
| % Share price total return | ||||||
| Investment trust | AIC sector | H1 2024 | 1 yr | 3 yr | 5 yr | 10 yr |
| Average trust ex VCTs | 7.72 | 18.06 | 8.04 | 46.75 | 170.81 | |
| Seraphim Space [LON:SSIT] | Growth Capital | 58.72 | 102.22 | N/A | N/A | N/A |
| [LON:MNL] | Global | 45.26 | 81.86 | 44.73 | 73.12 | 317.31 |
| Baker Steel Resources [LON:BSRT] | Commodities & Natural Resources | 34.18 | 19.10 | -43.92 | 6.21 | 29.66 |
| Schiehallion Fund [LON:MNTN] | Growth Capital | 32.43 | 64.71 | -47.45 | -16.60 | N/A |
| Molten Ventures LON:GROW | Growth Capital | 31.84 | 36.98 | -59.51 | -26.80 | N/A |
| Allianz Technology [LON:ATT] | Technology & Technology Innovation | 30.64 | 51.34 | 34.63 | 140.89 | 683.21 |
| Rockwood Strategic [LON:RKW] | UK Smaller Companies | 29.76 | 32.34 | 90.33 | 183.34 | 236.23 |
| Tufton Oceanic Assets [LON:SHIP] | Leasing | 28.73 | 33.06 | 29.90 | 74.77 | N/A |
| Marble Point Loan Financing [LON:MPLS] | Debt – Structured Finance | 28.48 | 40.29 | 46.61 | 51.63 | N/A |
| 3i Group LON:III | Private Equity | 28.02 | 60.96 | 187.34 | 224.71 | 982.97 |
Source: theaic.co.uk / Morningstar. Share price total return in % to 30/06/24. N/A means there is no performance history for this period. Ordinary share classes only. Excludes VCTs and companies undergoing liquidation or corporate activity e.g. bids or mergers.
In the six months to 30 June 2024, Seraphim Space Investment Trust from the Growth Capital sector was the best performing investment trust, up 59%, and Manchester & London from the Global sector was second with a return of 45%. They were followed by Baker Steel Resources from the up 34%.
The fourth and fifth best performing trusts were both from the Growth Capital sector: Schiehallion Fund up 32% and Molten Ventures also up 32%. In total there were three companies from the Growth Capital sector among the top ten best performers.
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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.
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