AIC: Biotech & healthcare wins Isa returns race

Pharma-Pills-Pharmaceutical-Biotech.jpgThe biotechnology and healthcare sector has topped the list of top-performing investment trusts held in Isas over the past 18 years, according to the Association of Investment Companies.

The Sector Specialist: Biotechnology & Healthcare has returned a whopping 1,313 per cent to date over the past 18 years followed by the Asia Pacific  and Global Emerging Markets sectors.

However, over the 2016/2017 Isa season, the Asia Pacific sector performed better than Biotechnology & Healthcare, returning 49.15 per cent and 33.44 per cent respectively.

Smaller companies also performed well during the 18-year period with European Smaller Companies ranking at fifth place, up 625 per cent, followed by North American Smaller Companies (556 per cent) and UK Smaller Companies (520 per cent), the AIC notes.

AIC communications director Annabel Brodie-Smith says investors have been rewarded for their patience despite volatility in some sectors.

She says: “Everyone has different ideas about what constitutes ‘long-term’ – in fact our own investor confidence research this year found that 8 per cent of active investors consider three to five years a ‘long-term’ investment horizon. Whereas we consider long-term investments to be at least five years and preferably longer.

“There’s no doubt that 18 years is a long-term investment and it was Warren Buffett who said that ‘successful investing takes time, discipline and patience.’

“It’s clear that investors in some of the top performing investment company sectors have been rewarded for their patience over the long-term. In some sectors investors have needed bags of patience, as demonstrated by the volatility of the Global Emerging Markets sector in recent years, but their investment has paid off over the long term. Of course, there’s no telling which sector will be topping the tables in the future so investors need to focus on a diversified portfolio for the long-term.”