Growth Capital was the top performing investment company sector in the year to November, which experts say was due to higher growth companies staying private for longer.
The figures, released by the Association of Investment Companies this week (December 7), showed the sector saw an average share price return of 47.43 per cent for the year, followed by the Property (UK Logistics) sector with a 43.14 per cent return, and Country Specialist with 31.33 per cent.
Annabel Brodie-Smith, communications director at the AIC, said despite the pandemic continuing to affect people's lives, the average investment company delivered a “healthy” 13 per cent return.
“This year the best-performing sectors are dominated by alternative assets such as unquoted companies and property, as well as specialist equity,” she said.
“The best-performing sector, Growth Capital, is relatively new and invests in later stage venture capital. It has proved popular as higher growth companies stay private for longer.”
The UK logistics sector benefited from a surge in online shopping and the need for more warehouse space, she said.
“It’s interesting to look back at the best-performing companies, but important to remember that past performance is not an indicator of future returns.”
Top 10 investment company sectors from 1 January to 30 November 2021
AIC sector | YTD | 1 year | 3 years | 5 years | 10 years | |
| Overall weighted average exc. VCTs | 13.41% | 20.03% | 49.78% | 81.67% | 261.59% |
1 | Growth Capital | 47.43% | 73.37% | N/A | N/A | N/A |
2 | Property – UK Logistics | 43.14% | 44.70% | 97.04% | N/A | N/A |
3 | Country Specialist | 31.33% | 40.83% | 67.20% | 130.83% | 387.03% |
4 | Environmental | 29.02% | 29.70% | 102.47% | 156.05% | N/A |
5 | Private Equity | 26.02% | 36.38% | 78.56% | 101.93% | 520.43% |
6 | Property – UK Commercial | 24.29% | 28.99% | 5.56% | 9.52% | 80.41% |
7 | Leasing | 22.97% | 20.18% | -56.69% | -58.48% | N/A |
8 | India | 21.29% | 32.50% | 28.09% | 46.59% | 156.49% |
9 | Debt – Structured Finance | 19.97% | 22.22% | 14.81% | 32.08% | N/A |
10 | Asia Pacific Smaller Companies | 19.84% | 26.04% | 35.04% | 53.47% | 177.33% |
Source: AIC/Morningstar. Sector returns are weighted averages. N/A denotes where sectors had too few constituents to calculate a meaningful average.
Top performing investment companies
Geiger Counter was the top performing investment trust, posting a 111.19 per cent share price total return for the year to November 30.
The trust, which sits in the Growth Capital sector, invests in firms involved in the exploration, development and production of energy, mainly within the uranium industry.
The trust’s managers, Rob Crayfourd and Keith Watson, said nuclear power was benefiting from a swing in sentiment in its direction.
They said: “Both governments and investors are increasingly aware of the need for nuclear power, both as a non carbon-emitting energy source and to provide baseload power in support of the green energy agenda.
“We think that the current supply deficit is unsustainable and will drive a continued recovery in the uranium price, which will bring new projects into production, particularly as current market uncertainties are making it difficult for new projects to advance.”
Geiger Counter was followed in performance by Schiehallion in the growth capital sector, up 108.54 per cent, and VietNam Holding in the country specialist sector, up 73.96 per cent over the same period.
Ten top-performing investment companies
Share price total return to 30 November 2021
| Year to date | 1 year | 3 years | 5 years | 10 years | ||
| Company name | AIC sector |
|
|
|
|
|
| Overall weighted average ex. VCTs |
| 13.41% | 20.03% | 49.78% | 81.67% | 261.59% |
1 | Geiger Counter | Commodities & Natural Resources | 111.19% | 234.29% | 154.35% | 229.58% | 14.71% |
2 | Schiehallion | Growth Capital | 108.54% | 117.84% | N/A | N/A | N/A |
3 | VietNam Holding | Country Specialist | 73.96% | 102.42% | 78.31% | 88.82% | 634.71% |
4 | Riverstone Energy | Commodities & Natural Resources | 60.61% | 70.36% | -59.44% | -63.39% | N/A |
5 | Tufton Oceanic Assets | Leasing | 57.10% | 57.10% | 56.03% | N/A | N/A |
6 | NB Private Equity Partners | Private Equity | 56.94% | 74.13% | 80.63% | 124.68% | 479.63% |
7 | AEW UK REIT | Property – UK Commercial | 54.42% | 59.98% | 52.87% | 74.38% | N/A |
8 | BMO Private Equity Trust | Private Equity | 53.65% | 57.49% | 56.74% | 91.79% | 367.79% |
9 | India Capital Growth | India | 47.79% | 62.94% | 42.37% | 71.92% | 232.39% |
10 | Tritax Big Box | Property – UK Logistics | 46.37% | 48.58% | 98.81% | 123.49% | N/A |
Source: AIC/Morningstar. N/A denotes where companies were not in existence for the entire period. Ordinary share classes only. Companies undergoing acquisition, liquidation or restructuring are excluded.
Sally.hickey@ft.com
