Asian and emerging markets trusts stage a comeback

Asia Pacific was the top performing investment company sector over this period, up nearly 18 per cent after underperforming the wider investment company sector in three of the last five years, in contrast to the average investment company ex VCT sector, up nearly 5 per cent over the first eight months of this year.

The Global Emerging Markets sector has also experienced a recovery and is up 11 per cent after underperforming the wider investment company sector in three of the last five years. It has also done well over 12 months to 31 August.

Global Smaller Companies is the second top performing sector over this period, up nearly 16 per cent, and has outperformed the wider investment company sector in three of the last four years.

Asia Pacific ex Japan, meanwhile, rose 11 per cent, as did Property Direct: Asia Pacific.

But after a strong period of performance, developed market sectors have not done so well over the first eight months of this year, with Japan coming bottom, and, European Smaller Companies, UK Smaller companies and UK All Companies also faring badly.

"While it's early days, investors will nevertheless be pleased to see some of the Asian and Global Emerging Markets sectors staging a recovery, especially given more challenging times in recent years," said Annabel Brodie-Smith, communications director at the AIC. "But there's no telling where the stock market may take us, so the message, once again, is plain and simple: investors need to keep a diversified portfolio."

Also see our fund tip for how to achieve diversity

Top performing investment trust sectors over first eight months of 2014

Source: AIC using Morningstar. *Includes original £100 capital invested.