Investment trusts focused on technology and renewable energy have shown the greatest resilience since the start of the Iran conflict in late February. The Association of Investment Companies (AIC) identified these closed-ended funds as strong performers during the period.
Annabel Brodie-Smith, director of the AIC, noted that technology sector investment trusts have continued to advance due to the ongoing AI investment boom. The growth capital sector also thrived, attributed to its significant holdings in fast-growing private companies and potential Initial Public Offerings (IPOs) such as Anthropic, ByteDance, and Revolut.
Beyond tech and growth, renewable energy infrastructure investment trusts also performed well. Shares in this sector have reportedly bounced as investors have shown increased interest in renewable energy, particularly during a conflict that has highlighted vulnerabilities in oil and gas supply chains. Charlie Wright, co-lead investment manager of Foresight Environmental Infrastructure, suggested the Iran conflict may have prompted investors to reassess the strategic value of renewables.
Molten Ventures, a growth capital trust, secured the top spot in terms of share price total return since the conflict began. The Biotech Growth Trust came second, followed by Allianz Technology Trust in third place. Foresight Environmental Infrastructure was one of two renewable energy infrastructure trusts in the top five.