The IT Private Equity topped the charts as the highest-performing AIC sector of 2023, returning 43% to the end of November against the average trust’s return of 3%.
The technology and innovation sector was at its heels with a 37% return, with other areas including North America, Europe, and India behind at a distance with returns ranging from 14% to 10%.
See also: The AIC: IT-focused investment companies and UK trusts tipped to be top performers in 2024
Annabel Brodie-Smith, communications director of the Association of Investment Companies, said: “This year’s top-performing sectors reflect the market and economic conditions in 2023. It’s important to remember that investment is about the long term. Rather than focusing on today’s winners, it’s important to build a balanced portfolio of investments which suits your needs.”
Investment company 3i Group was the highest performer of the year, with a return of 80%. Behind them, Manchester & London returned 56.4%, JPMorgan Emerging Europe, Middle East & Africa returned 54.6%, Doric Nimrod Air Two returned 44.4%, and Polar Capital Technology returned 38.9%.
“Private Equity, the best-performing sector has come back strongly this year, with 3i the top-performing investment trust of the year,” Brodie-Smith said.
“Many other trusts in the Private Equity sector are performing well this year but are currently trading on wide double-digit discounts. The Technology & Technology Innovation sector has also bounced back, with the rise of artificial intelligence driving the performance of the ‘Magnificent Seven’ technology stocks in the US.”
Two technology and innovation funds cracked into the list of top ten investment companies this year, along with three in the leasing sector and two within private equity.
“It’s been a challenging year for investment companies, with high inflation and rising interest rates, unhelpful cost disclosure regulation and war breaking out in the Middle East and continuing in Ukraine,” Brodie-Smith continued.
“However, many investment companies have performed well over the first 11 months of the year and this accelerated in November with better-than-expected inflation figures bringing an early Santa rally.”
