Growth capital has been the top-performing investment trust sector in 2024 so far, data from the Association of Investment Companies (AIC) has shown.

The sector produced a return of 47 per cent over the 11 months to the end of November 2024, while the average investment company returned 13 per cent over the same period.

The private equity sector achieved the second highest return over the same period with 40.7 per cent, followed by the leasing sector with a return of 30.4 per cent.

Technology & technology innovation investment trusts returned 29.8 per cent and the debt – structured finance sector returned 20.3 per cent.

In the 11 months to the end of November, Seraphim Space Investment Trust from the growth capital sector was the best performing investment trust with a total return of 74 per cent.

Second came Petershill Partners, also from the growth capital sector, which was up by 71 per cent.

They were followed by 3i Group from the private equity sector, which returned 56 per cent, and Baillie Gifford US Growth from the North America sector, which rose by 50 per cent over the same period.

The leasing sector had two trusts in the top 10, while the flexible investment sector, the commodities & natural resources sector, the global equity income sector, and the global sector all had one trust in the top 10.

Commenting on the findings, AIC communications director, Annabel Brodie-Smith, said: “Investment trusts have performed well this year with interest rates starting to come down and good progress on cost disclosure rules, although geopolitical headwinds remain. The Trump trade generally boosted performance in November after October’s uncertainty prior to the Budget but concerns about inflation persist.

“Growth capital, the best performing sector, has bounced back strongly this year, with Seraphim Space’s stratospheric ascent making it the top performing trust, followed by Petershill Partners.

“Private equity, last year’s top performing sector, came second this year, boosted by the strong performance of 3i Group. The other top performing investment trusts come from a range of sectors and the majority are trading on double-digit discounts.

“This year’s best performers tell an interesting story but it’s important to remember that investment is about the long term. Building a balanced portfolio of investments which suits your needs, rather than focusing on today’s winners, is most important.”

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