Commodities and natural resources were the top-performing sector for investment trusts in 2022, new data shows.
The sector produced a return of 26 per cent in the year-to-date to November 30, compared with the average investment company loss of 15 per cent, according to the Association of Investment Companies.
Within this sector, DP Aircraft I was the best performing trust, returning 167 per cent in the period, followed by Doric Nimrod Air Three (returning 70 per cent) and Doric Nimrod Air Two (returning 66 per cent).
The leasing sector was the second-best performing in the year, with a return of 14 per cent.
This was followed by global equity income and renewable energy infrastructure with a 7 per cent return.
The two other sectors that saw a positive return were hedge funds, with 3 per cent, and debt - direct lending at 1 per cent.
Ten best-performing sectors in the year to date
Share price total return in % | Year to date* | 1 year | 3 years | 5 years | 10 years | |
| AIC sector | |||||
| Average investment company | -15.43 | -13.82 | 20.96 | 34.98 | 184.65 |
1 | Commodities & Natural Resources | 26.02 | 32.76 | 111.16 | 36.92 | 94.34 |
2 | Leasing | 13.67 | 21.54 | -16.68 | -23.97 | N/A |
3 | Global Equity Income | 6.98 | 12.61 | 28.48 | 40.88 | 142.63 |
4 | Renewable Energy Infrastructure | 6.84 | 9.91 | 18.21 | 57.81 | N/A |
5 | Hedge Funds | 2.64 | -0.48 | 42.22 | 37.96 | 103.92 |
6 | Debt – Direct Lending | 1.19 | 2.61 | 16.55 | 27.47 | N/A |
7 | India | -0.15 | 1.04 | 24.33 | 19.53 | 139.16 |
8 | UK Equity Income | -0.67 | 3.64 | 11.69 | 23.43 | 106.41 |
9 | Asia Pacific Equity Income | -3.79 | -0.68 | 12.59 | 21.10 | 107.11 |
10 | Asia Pacific Smaller Companies | -4.26 | -3.24 | 24.39 | 29.72 | 94.25 |
Source: theaic.co.uk & Morningstar. N/A means there is no performance history for this period. Excludes VCTs. * Year to date = 11 months to 30 November 2022.
Communications director of the AIC, Annabel Brodie-Smith, said it has been a “tough year” for investment companies with high inflation and rising interest rates.
“In a year overshadowed by a global energy crisis and increasing alarm about climate change, it’s understandable that the renewable energy infrastructure sector was one of the top performers,” she said.
“Though this year’s top-performing sectors tell an interesting story, it’s very specific to the market and economic conditions of 2022. It’s important to remember that investment is about the long term.
“Building a balanced portfolio of investments which suits your needs, rather than just focusing on today’s winners, is what’s most important.”
Ten best-performing investment companies in the year to date
Company | AIC sector | Share price total return in % | |||||
Year to date* | 1 year | 3 years | 5 years | 10 years | |||
Average investment company | -15.43 | -13.82 | 20.96 | 34.98 | 184.65 | ||
1 | DP Aircraft I | Leasing | 166.67 | 300.00 | -94.77 | -95.44 | N/A |
2 | Doric Nimrod Air Three | Leasing | 70.43 | 73.23 | 11.03 | 15.39 | N/A |
3 | Doric Nimrod Air Two | Leasing | 66.27 | 72.52 | 8.17 | 8.39 | 40.71 |
4 | Riverstone Energy | Commodities & Natural Resources | 54.84 | 50.94 | 70.41 | -43.22 | N/A |
5 | Amedeo Air Four Plus | Leasing | 53.03 | 89.62 | -38.76 | -45.18 | N/A |
6 | BlackRock Energy and Resources Income | Commodities & Natural Resources | 37.53 | 44.83 | 138.01 | 132.77 | 97.18 |
7 | CQS Natural Resources Growth & Income | Commodities & Natural Resources | 36.46 | 35.16 | 177.25 | 134.27 | 63.81 |
8 | Gresham House Energy Storage | Renewable Energy Infrastructure | 32.41 | 32.92 | 87.42 | N/A | N/A |
9 | Literacy Capital | Private Equity | 26.44 | 23.92 | N/A | N/A | N/A |
10 | BlackRock World Mining Trust | Commodities & Natural Resources | 25.29 | 38.20 | 136.91 | 146.20 | 114.67 |
Source: theaic.co.uk & Morningstar. N/A means there is no performance history for this period. Ordinary share classes only. Excludes VCTs and companies undergoing liquidation. * Year to date = 11 months to 30 November 2022.
sally.hickey@ft.com
