The top performing investment company sector in 2023 was private equity, according to data from the Association of Investment Companies.
Despite a ‘challenging year’ the sector produced a return of 43 per cent in the 11 months to the end of November 2023, compared with the average investment company which returned 3 per cent over the same period.
Next on the AIC's list was the technology and technology innovation sector, which achieved returns of 37 per cent, while the North America sector came third with a return of 14 per cent.
The fourth best-performing sector was Europe which returned 12 per cent and the India/Indian Subcontinent sector came fifth returning 10 per cent.
Annabel Brodie-Smith, AIC communications director, said: “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.
"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."
In the 11 months to November 30, 3i Group from the private equity sector was the best-performing investment company up 71 per cent, with Manchester and London from the global sector up 56 per cent, coming in second.
Brodie-Smith added: "Many other trusts in the private equity sector are performing well this year but are currently trading on wide double-digit discounts.
"The technology and 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.
“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.”
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
Despite a ‘challenging year’ the sector produced a return of 43 per cent in the 11 months to the end of November 2023, compared with the average investment company which returned 3 per cent over the same period.
Next on the AIC's list was the technology and technology innovation sector, which achieved returns of 37 per cent, while the North America sector came third with a return of 14 per cent.
The fourth best-performing sector was Europe which returned 12 per cent and the India/Indian Subcontinent sector came fifth returning 10 per cent.
Annabel Brodie-Smith, AIC communications director, said: “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.
"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."
In the 11 months to November 30, 3i Group from the private equity sector was the best-performing investment company up 71 per cent, with Manchester and London from the global sector up 56 per cent, coming in second.
Brodie-Smith added: "Many other trusts in the private equity sector are performing well this year but are currently trading on wide double-digit discounts.
"The technology and 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.
“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.”
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
