AIC: Seraphim Space tops investment trust performance in H1

Seraphim Space was the top-performing investment trust in H1, according to data from the Association of Investment Companies (AIC).

The £141m trust, which launched in 2021, returned 58.7% over the six-month period.

The Growth Capital sector, which invests in unquoted companies, was up 21.5%, with three of the 10 best performing individual trusts from the sector. The sector is highly volatile, however, with returns down 60.5% over a three-year lens.

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Unsurprisingly, the Technology & Technology Innovation sector was the best performer across the first half of 2024, returning 28% as tech stocks continued to benefit from interest in artificial intelligence.

The average investment trust, excluding VCTs, was up 7.7%.

Other top performers included the £314m Manchester & London Investment Trust. The fund, run by manager Mark Sheppard, has 32.3% if its portfolio in Nvidia, with a further 24.9% position in Microsoft, according to FE Fundinfo data.

Elsewhere, Baker Steel Resources rose 34.2%, while Baillie Gifford’s Schiehallion Fund was up 31.8% for the period.

“After two challenging years, investment trust performance has bounced back strongly in the first half of 2024,” Annabel Brodie-Smith, communications director of the AIC, said.

“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 Technology & Technology Innovation sector 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.”

Best performing investment trust sectors in H1 2024

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