What were the top performing investment trust sectors in H1?

The European Smaller Companies sector has delivered the best performance in H1 this year returning 32 per cent, according to data compiled by the AIC.

The Europe and Property Direct – Europe sectors came in third and fifth place respectively, delivering 22 per cent and 19 per cent.

AIC communications director Annabel Brodie-Smith says: “The fall in the value of sterling since the Brexit vote, together with positive European election results, has contributed to the strong performance of the European investment company sectors.”

The Japanese Smaller Companies and UK Smaller Companies sectors also delivered top performance delivering 23 per cent and 17 per cent respectively.

Asia Pacific rounded out the top five returning 20.4 per cent.

“Investment companies generally perform well in strong markets and the first half of the year reflects this, with the average company up 10 per cent and the average discount narrowing from 3.8 per cent to 1.7 per cent,” says Brodie-Smith. “Of course, it’s interesting to look at the top performing sectors but there’s no guarantee that this performance will be repeated.”

The FTSE 100 returned 4.7 per cent over the first half.

H1 2017: Top 10 best performing investment company sectors – lump sum % share price total return

Overall Weighted Average ex VCTs 10.03
AIC sector
European Smaller Companies 32.30
Japanese Smaller Companies 22.82
Europe 22.05
Country Specialists: Asia Pacific 20.42
Property Direct – Europe 18.86
UK Smaller Companies 17.30
Asia Pacific – Excluding Japan 15.62
Sector Specialist: Biotechnology & Healthcare 14.65
Global 14.14
Japan 14.03
Source: AIC using Morningstar