Quarter of investment company sector hit share price highs in January

With the FTSE 100 reaching record highs in January, research published today by the Association of Investment Companies (AIC) using data provided by Winterflood Investment Trusts shows that a significant proportion of the investment company sector reached share price highs this month.

The data used covers the last 25 years up to 18 January 2017.

Almost a quarter (23 per cent, 71 by number) of the investment company sector (excluding VCTs) hit a share price high in January 2017.

Perhaps not surprisingly given the fall in sterling, which gave a boost to companies with overseas exposure, it was the global sector which saw the greatest proportion of share price highs (three quarters, or 17 out of 22 companies in the sector).

In the Global Equity Income sector 6 out of 7 companies achieved share price highs. The Private Equity sector saw almost half (9 out of 20) of companies hit a share price high.

Annabel Brodie-Smith, Communications Director, Association of Investment Companies, said: “January has seen a 12-day run of record breaking highs for the FTSE 100 and it’s positive that a fifth of the investment company sector achieved share price highs. Companies in the Global sectors have performed particularly well, boosted by the currency impact. Of course there’s no telling where markets might go next, and more cautious investors may consider drip feeding their investments on a monthly basis, to smooth out some of the stock market highs and lows. However, over the long-term lump sum investments have tended to outperform regular investments, but with more ups and downs along the way.”