When geopolitical shocks occur, like the conflict in Iran that has shaken markets since late February, knowing where to put your money to protect your wealth is key.
The Association of Investment Companies (AIC), an industry body representing the UK’s investment trusts, has identified the closed-ended funds that have shown the greatest resilience during the conflict’s duration.
Technology-focused investment trusts have led the way, with the continued demand for artificial intelligence (AI) stocks and funds lifting the sector in spite of global turbulence.
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“Investment trusts in the technology sector have continued to power ahead as the AI investment boom goes on,” said Annabel Brodie-Smith, director of the AIC. “And the growth capital sector has thrived due to its big holdings in fast-growing private companies and potential IPOs such as Anthropic, ByteDance and Revolut.”
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So which investment trust sectors proved the most resilient – and which ones have delivered the greatest returns for shareholders over the course of the conflict?
The investment trust sectors that have been most resilient
It wasn’t all about tech and growth sectors. Some of the other top-performing investment trusts since the start of the Iran conflict have come from less obvious sectors – particularly renewable energy.
|
AIC sector |
Share price total return % |
|---|---|
|
Technology & Technology Innovation |
29.6 |
|
Growth Capital |
21.9 |
|
Renewable Energy Infrastructure |
16.8 |
|
Healthcare & Biotechnology |
15.8 |
|
Global |
13.4 |
|
Global Smaller Companies |
11.9 |
|
Asia Pacific |
11.8 |
|
Infrastructure |
11.3 |
|
Asia Pacific Equity Income |
9.8 |
|
Global Emerging Markets |
9.6 |
Source: theaic.co.uk / Morningstar. Share price total return in % from 02/03/2026 to 31/08/2026. Excludes VCTs. See AIC sector definitions.
“Shares across the [renewable energy infrastructure] sector have bounced as investors have warmed to renewable energy during a war that has exposed the weaknesses of our oil and gas supply chains,” said the AIC’s Brodie-Smith.
Commenting on the outperformance of the renewable energy infrastructure sector, Charlie Wright, co-lead investment manager of Foresight Environmental Infrastructure (LON:FGEN), said “Iran conflict has perhaps prompted investors to reassess the strategic value of renewables and environmental infrastructure, reminding investors that an overreliance on volatile imported fuels is not a wise position to take.”
Which investment trust sectors have outperformed since the start of the Iran war?
Foresight Environmental Infrastructure was one of two renewable energy infrastructure investment trusts to make the top-five in terms of share price total return since the start of the Iran conflict.
Growth capital trust Molten Ventures (LON:GROW), which holds stakes in Revolut and Finnish space economy start-up ICEYE, took the top spot, while the Biotech Growth Trust (LON:BIOG) took second and Allianz Technology Trust (LON:ATT) came third.
|
Investment trust |
AIC sector |
Share price total return % |
|---|---|---|
|
Molten Ventures |
Growth Capital |
53.0 |
|
Biotech Growth |
Healthcare & Biotechnology |
38.5 |
|
Allianz Technology Trust |
Technology & Technology Innovation |
33.3 |
|
Gresham House Energy Storage |
Renewable Energy Infrastructure |
32.2 |
|
Foresight Environmental Infrastructure |
Renewable Energy Infrastructure |
31.0 |
|
Manchester & London |
Technology & Technology Innovation |
29.4 |
|
Polar Capital Technology |
Technology & Technology Innovation |
28.4 |
|
Athelney Trust |
UK Smaller Companies |
28.3 |
|
International Biotechnology |
Healthcare & Biotechnology |
24.9 |
|
Seraphim Space Investment Trust |
Growth Capital |
24.0 |
|
Greencoat Renewables |
Renewable Energy Infrastructure |
23.4 |
|
Tufton Assets |
Leasing |
23.3 |
|
Schroder BSC Social Impact Trust |
Flexible Investment |
22.8 |
|
Greencoat UK Wind |
Renewable Energy Infrastructure |
22.0 |
|
Mobius Investment Trust |
Global Emerging Markets |
21.1 |
|
Odyssean Investment Trust |
UK Smaller Companies |
20.9 |
|
Scottish Mortgage |
Global |
20.9 |
|
Baillie Gifford European Growth |
Europe |
20.9 |
|
Renewables Infrastructure Group |
Renewable Energy Infrastructure |
20.8 |
|
RTW Biotech Opportunities |
Healthcare & Biotechnology |
20.6 |
Source: theaic.co.uk / Morningstar. Share price total return in % from 02/03/2026 to 31/08/2026. Excludes VCTs and trusts in liquidation.
Stephen Packwood, co-manager of Greencoat UK Wind (LON:UKW) said “investor interest in renewables has picked up since the start of the war given security of supply and cost of energy concerns” but that the trust’s “strong performance in terms of power and net cash generation” had been the main driver behind its outperformance, covering its dividend payout in the first six months of 2026 and providing further capital to grow the business.
“Renewables, in particular wind, are well placed to take advantage of the forecasted increase in electricity demand over the coming years,” he added.
