Renewable trusts top performance tables amid coronavirus crash

Investment trusts in the Renewable Energy Infrastructure sector have suffered smallest losses in market volatility

Investment companies in the Renewable Energy Infrastructure sector have suffered the smallest losses of all the peer groups categorised by the Association of Investment Companies (AIC), during one of the most volatile periods in a generation

The covid-19 pandemic has caused widespread falls in markets with the FTSE 100 and S&P 500 down 27% and 13% respectively over the past six weeks.

The AIC has published the 10 sectors that have held up since 31 January 2020, with Renewable Energy Infrastructure topping the list to post the shallowest fall of 3.2%.

This was followed by Debt – Direct Lending (-4.4%), Growth Capital (-5.8%), Hedge Funds (-7.2%) and Infrastructure (-8.6%).

AIC’s analysis of individual investment trusts also showed two responsibly-invested companies –  the US Solar Fund and Aquila European Renewables Income fund (both sitting in the Renewable Energy Infrastructure sector) performed better than the majority of their peers and were in the top 10.

Annabel Brodie-Smith, communications director of the AIC, said: “It’s been an alarming few weeks for investors and all investment company sectors have suffered losses. Renewable Energy Infrastructure has held up the best during the market downturn. The sector has been in strong demand for its high yields and the underlying assets of these investment companies such as wind farms, solar parks and energy storage have a lower correlation to the wider stock market. Other sectors that focus on alternative assets, such as infrastructure, hedge funds, and debt, have also suffered shallower losses than the market.”

The top 10 performing investment company sectors since 31 January 2020

Rank AIC sector % share price total return 31/01/2020 – 13/03/2020
  Average investment company (ex. VCTs) -16.2
1 Renewable Energy Infrastructure -3.2
2 Debt – Direct Lending -4.4
3 Growth Capital -5.8
4 Hedge Funds -7.2
5 Infrastructure -8.6
6 Financials -10.0
7 Debt – Structured Finance -10.3
8 Biotechnology & Healthcare -10.3
9 Debt – Loans & Bonds -11.1
10 Asia Pacific -11.7

Source: AIC/Morningstar.

The top 10 performing investment companies since 31 January 2020

Rank Investment company AIC sector % share price total return  31/01/2020 – 13/03/2020
  Average investment company (ex. VCTs) Peer group weighted average -16.2
1 BH Global USD Hedge Funds 21.5
2 BH Macro USD Hedge Funds                19.3              
3 Schiehallion Growth Capital 10.9
4 Ashmore Global Opportunities GBP Global Emerging Markets 9.8
5 BH Global GBP Hedge Funds 9.2
6 Hadrian’s Wall Secured Investments Debt – Direct Lending 8.4
7 BH Macro GBP Hedge Funds 7.9
8 Marble Point Loan Financing Debt – Structured Finance 5.7
9 US Solar Fund Renewable Energy Infrastructure 5.1
10 Aquila European Renewables Income Fund Renewable Energy Infrastructure 4.7

Source: AIC/Morningstar. Performance is share price total return in sterling terms.


Natalie Kenway

Natalie is editor in chief at MA Financial covering ESG Clarity, Portfolio Adviser and International Adviser. She was previously global head of ESG insight for ESG Clarity and has been an investment journalist...