Artificial intelligence (AI) was the key theme investors were reacting to in 2023 – and that trend has continued into the first half of this year.
This is what F&C Investment Trust fund manager Paul Niven said while discussing its interim results yesterday (1 August).
The trust reported a Net Asset Value (NAV) total return of 13.2%, ahead of the benchmark return of 12.0%.
The share price total return for H1 2024 increased by 6.4%, to 1,012p from 962p on 31 December 2023.
The trust has underweight exposure to the ‘Magnificent Seven’ stocks and Niven said: “Recently performance within the group has been more mixed, with those geared to the AI theme leading”.
The trust has “more diversified exposure to the AI theme” from holdings in Broadcom, Vertiv Holdings and Qualcomm, he added.
The F&C Investment Trust is the oldest investment trust in the world, Niven said, and has a net zero target of 2050 or earlier if achievable.
The trust is listed on the FTSE 100.
However, in February 2024, it was reported the purchase of investment trusts on adviser platforms dropped by almost a third (28%) year-on-year to £948m in 2023, according to data compiled for the Association of Investment Companies (AIC) by ISS Financial Clarity.
Additionally, all products purchased on adviser platforms dropped by 3% in 2023 from £184.9bn to £179.2bn.
Net demand for investment trusts on adviser platforms in 2023 was negative for the first time since records began in 2011.
In contrast during 2022, net demand was positive and at an all-time high of £474m.
Global came top and was the most purchased investment trust sector in 2023, as it accounted for 11% of all purchases.
Flexible investment came in second place, with the third most purchased sector in 2023 being infrastructure, followed by UK equity income and UK smaller companies.
Niven added that only a very small part of the trust’s portfolio is listed in UK equities.
