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Biotech reaps rewards in 2012

The top-performing investment trusts and investment trust sectors over the past 12 months were in the biotech and healthcare areas, while a number of IC Top 100 Funds also did well
December 21, 2012

The best-performing investment trust sector over the 12 months to the end of November 2012 was sector specialist: biotechnology & healthcare, which rose 26 per cent, and the top-performing investment trust, Biotech Growth (BIOG), is in this sector, reports the Association of Investment Companies (AIC). This trust's share price total return rose an impressive 52 per cent.

This was followed by two IC Top 100 Funds - Aberdeen Asian Smaller Companies (AAS) and Jupiter European Opportunities (JEO) - both up 45 per cent over this period, while another trust on our list, Standard Life European Private Equity (SEP), came in fifth, having increased 39 per cent.

The second and third best-performing investment trust sectors were UK Smaller Companies and North American Smaller Companies, up 24 per cent and 21 per cent respectively. Despite ongoing concerns over the eurozone crisis, the Europe investment company sector was the fourth best performer, up 20 per cent, and private equity was the fifth best, up 18 per cent.

Analysis from the AIC also indicates that the average investment company has performed well, up 6 per cent over the 12 months to the end of November. The average investment company is up 26 per cent over the last three years, 9 per cent over five years and 168 per cent over 10 years.

"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," said Annabel Brodie-Smith, communications director at the AIC. "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 are in any doubt before investing."

Top five performing AIC member companies over one year, excluding VCTs (share price total return on £100, less 3.5 per cent expenses, to 30 November 2012)

Sector1 year3 years5 years10 years
Average Investment Company (ex VCTs) 106.34126.31109.35268.16
Biotech GrowthSector Specialist: Biotechnology & Healthcare151.7201.9263.33465.21
Aberdeen Asian Smaller CompaniesAsia Pacific excluding Japan145.35248.95312.5944.37
Jupiter European OpportunitiesEurope145.1191.79166.62 518.23
Aberdeen New ThaiCountry Specialists: Asia Pacific139.8248.18245.23810.88
Standard Life European Private EquityPrivate Equity139.39166.2275.18221.18

Source: Association of Investment Companies

Top five performing sectors over one year (share price total return on £100, less 3.5 per cent expenses, to 30 November 2012)

Sector1 year3 years5 years10 years
Sector Specialist: Biotechnology & Healthcare126.2160.92184.32260.46
UK Smaller Companies124.15159.22137.2359.44
North American Smaller Companies121.19147.27119.56238.58
Europe119.81119.08100.84270.78
Private Equity117.81177.2472.64175.34

Source: Association of Investment Companies