The Best Performing Investment Trusts & Sectors in 2012 – Revealed
Top performing fund Biotech Growth Trust (LON:BIOG) returned a fantastic 52%. Its sector, Biotechnology & Healthcare was the top performing sector for the year too.
New research by the AIC (Association of Investment Companies), has revealed that WhichInvestmentTrust.com favourite Biotech Growth trust has returned more to its investors on a total return basis in 2012 than any other fund in the investment trust sector. The figures (taken at the end of November) also revealed the four funds that make up the AIC’s Biotechnology & Healthcare sector beat the return of any other sector over the same timeframe, returning 26%.
The average investment trust has returned 6.34% for the year to date (figures till the end of November), which is below the average of the FTSE All Share index which is a smidgen over 7%.
The next top performing sector is UK Smaller Companies followed by the North American Smaller Companies sectors, which were up 24% and 21% respectively. Surprisingly for many, the next top performing sector is Europe which returned a fantastic 20% (You can read reviews of two of our top picks from this sector below).
The final member of the top five was the Private Equity Sector, up 18%.
| SECTOR | 1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS |
|---|---|---|---|---|
| Biotechnology & Healthcare | 26% | 61% | 84% | 160% |
| UK Smaller Companies | 24% | 59% | 37% | 59% |
| North American Smaller Companies | 21% | 47% | 20% | 39% |
| Europe | 20% | 19% | 1% | 71% |
| Private Equity | 18% | 77% | 73% | 75% |
Data: AIC (Association of Investment Companies) and based upon share price total return on £100 invested, less 3.5% expenses, to 30 November 2012.
Top performing Individual Investment Trusts
The distance between the 12 month returns from the top 5 was not colossal, with the biggest difference over one year being between the leader the Biotech Growth trust at 51%, and the number two Aberdeen Asian Smaller Companies Investment Trust (LON:AAS) on 45%. The number 3 fund came in only a few basis points behind with Jupiter European Opportunities Trust (LON:JEO) 45% too.
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On a 10 year basis the fantastic 365% return from Biotech Growth is smashed out of the water by Aberdeen Asian Smaller Companies 844% return (yes you read that right), and Aberdeen New Thai Investment Trust (LON:ANW) ' 744% return See table below).
| INVESTMENT TRUSTS | SECTOR | 1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS |
|---|---|---|---|---|---|
| Average Investment Company (ex VCTs) | - | 6% | 26% | 9% | 68% |
| Biotech Growth Trust | Biotechnology & Healthcare | 52% | 102% | 163% | 365% |
| Aberdeen Asian Smaller Companies | Asia Pacific- Excluding Japan | 45% | 149% | 213% | 844% |
| Jupiter European Opportunities | Europe | 45% | 92% | 63% | 418% |
| Aberdeen New Thai | Asia Pacific | 40% | 148% | 145% | 711% |
| Standard Life European Private Equity | Private Equity | 40% | 66% | 75% | 121% |
Data: AIC (Association of Investment Companies) and based upon share price total return on £100 invested, less 3.5% expenses, to 30 November 2012.
Annabel Brodie-Smith, Communications Director of the AIC who produced the research said: “Despite the tough economic environment in 2012, there has been strong performance in a wide variety of investment companies and sectors, illustrating why a balanced portfolio is important. Top performing sectors range from the defensive Biotechnology & Healthcare, to the growth orientated smaller company sectors. With all the Eurozone worries so widely reported, it’s interesting to see that Europe is one of the top performing sectors.”
“It’s always interesting to look at the top performers over the last year, but it should be remembered that investing is for the long term, and investment companies often achieve their best returns over longer periods. This year’s popular sector or company may not be in favour next year so it’s important to take a long-term view, have a balanced portfolio and seek advice if you in any doubt before investing.”
See links below to our Investment Trust Analyst reviews of investment trusts in the top 5 sectors.
- Read more on Biotechnology & Healthcare including our view here.
- UK Smaller Companies here.
- Europe here and here.
- Private Equity here.
WhichInvestmentTrust.com Disclaimer should always be referenced with all of our articles. If you haven’t read it please do so now.
Filed Under: Investment Trusts,
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WhichInvestmentTrust.com researches and explains the best and the worst that the Investment Trust & Investment Company sector has to offer. It is a £95 billion sector (assets under management) that enjoy a lower profile than I beleive it deserves. Research has shown that investments trusts outperform their open ended rivals… ...read more or visit website »
Disclaimer:
Disclaimer: WhichInvestmentTrust.com is designed to give you the investor information which might help with your decision on suitable investments. It is not intended as a recommendation or as financial advice. We are NOT authorised by the FSA (Financial Services Authority) to give advice. We are NOT regulated by the FSA either. Instead you should use this site and the information within it for research purposes only. The suitability of the investments discussed here will depend upon your personal circumstance. If you are unsure about its suitability for you personaly then seek the counsel of an experienced financial adviser. Considered financial advice is often greatly undervalued and is of great use in navigating the complex universe that is both investments and holistic financial planning. You should also remember that when reviewing investments past performance has been shown to be an often poor indicator of future performance, and particularly so in the short term. Before making an investment it is important to consider the risk to your capital should the investment go down in value. Substantial loses can be experienced, again this is especially so over the short term. It is also important to consider that the nature of the investments featured on WhichInvestmentTrust.com are long term in nature and should NEVER be considered over a short term horizon. Predicting the direction of investment markets on a short term basis has been shown to be incredibly difficult, and no one here at WhichInvestmentTrust.com professes to have any such experience or qualification. Dice McCairn, Editor WhichInvestmentTrust.com
- Biotech Growth Trust
- Aberdeen Asian Smaller Companies Investment Trust
- Jupiter European Opportunities Trust
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The Biotech Growth Trust PLC seeks capital appreciation through investment in the worldwide biotechnology industry, principally by investing in emerging biotechnology companies. The Company invests in a diversified portfolio of biotechnology (including emerging biotechnology companies) and related securities on a worldwide basis. The Company’s top 10 investments included Warner Chilcott, Impax Laboratories, Actelion, Onyx Pharmaceutical, Affymetrix, Regeneron Pharmaceutical, 3SBio, Immunogen, Cubist Pharmaceutical and Neurocrine Biosciences. The Company’s Investment Manage is OrbiMed Capital LLC. more »
Aberdeen Asian Smaller Companies Investment Trust PLC is an investment trust. The investment objective of the Company is to maximize total return to shareholders over the long term from a portfolio of quoted companies in the economies of Asia and Australasia, excluding Japan. The Company’s assets are invested in a diversified portfolio of securities in quoted smaller companies across a range of industries and economies in the investment region, including Australia, Bangladesh, China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Pakistan, The Philippines, Singapore, Sri Lanka, Taiwan and Thailand. As of July 31, 2012, the Company’s investment portfolio included Multi Bintang Indonesia, AEON Co (M), Siam Makro, Bukit Sembawang Estates, LPI Capital, Godrej Consumer Products and Bank OCBC NISP. Aberdeen Asset Management Asia Limited is the manager of the Company. more »
Jupiter European Opportunities Trust PLC is an investment trust. The objective of the Company is to invest in securities of European companies and in sectors or geographical areas which are considered by the Investment Manager to offer good prospects for capital growth, taking into account economic trends and business development. The Company invests no more than 15% of its gross assets in other the United Kingdom listed investment companies, including investment trusts listed on the London Stock Exchange. As of May 31, 2012, the Company had no such investments. As of May 31, 2012, the Company had investments in Oil & Gas, Basic Materials, Industrials, Consumer Goods, Health Care, Consumer Services, Media, Telecommunications, Financials and Information Technology. The Company’s fund manager is Jupiter Asset Management Limited. more »
