The European sector produced a return of 24% in the six months to the end of June, while the average investment trust delivered a return of 7%, as investors shifted their focus away from the US to European investment trust sectors, according to AIC data.
The Property-UK Commercial sector generated the second highest return of 18%, whilst the Europe sector came third with a return of 17%.
The fourth best performing sector was China/Greater China, which returned 15%, with the UK All Companies sector coming in fifth with a return of 13%.
Annabel Brodie-Smith, communications director of the Association of Investment Companies, said: “Despite the market turmoil caused by Trump’s tariffs, investment trusts have continued to perform well in the first half of this year. It’s been a strong six months for Europe as investors have reallocated away from the US into the European investment trust sectors. Investment trusts investing in the UK, China and Japan have also been beneficiaries of this tilt away from the US.”
Brodie said the UK commercial property sector bounced back this year as a result of interest rates starting to come down, coupled with strong rental growth and an increase in M&A activity.
“It’s useful to look at this year’s short-term winners, but it’s important to remember that investment is all about the long term. Investors need to build a well balanced portfolio of investments which meets their needs over time,” she added.
The data showed that in the first half of the year, DP Aircraft I from the leasing sector was the top performing investment trust, up 108% followed by Gresham House Energy Store from the renewable energy infrastructure sector, which jumped by 71%.
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