10 most-popular investment trusts – January 2020
Investors started the new decade much as they had spent the last: buying technology and growth stocks.
7th February 2020 12:43
by Tom Bailey from interactive investor
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Investors started the new decade much as they had spent the last: buying technology and growth stocks.
Investors started the new decade much as they had spent the last: buying technology and growth stocks. At least that was what the latest data from Money Observer’s parent company interactive investor showing the most bought investment trusts of January suggested, with technology-related trusts proving the most popular.
As has been the case nearly every month for the past few years, Scottish Mortgage (LSE:SMT) topped the most-bought list.
The trust, managed by James Anderson and Tom Slater, has one-year performance of 24.1% and has delivered 77.5% over a three-year timeframe.
Towards the end of January the trust saw Tesla (NASDAQ:TSLA), which accounts for around 6% of its portfolio, start to be seen much more favourably by investors. Over the course of the past five trading sessions this has given Scottish Mortgage a boost, with the share price up 5.8%.
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In general, there appeared to be renewed optimism surrounding technology and growth stocks. This can be seen by the return of Allianz Technology Trust (LSE:ATT) to the top 10 rankings alongside Polar Capital's (LSE:POLR) six place surge up the rankings.
Allianz Technology Trust, run by veteran technology investor Walter Price, has the highest three-year return of all trusts on the most-bought list, sitting at 114.2%. Over one year it has returned investors 35.7%. Polar Capital has provided a similar return over one year of 35.1%.
In December many UK smaller company and value focused trusts burst into the most-bought rankings. This was on the back of renewed optimism about the prospects of the UK economy, and therefore domestic facing stocks, after Boris Johnson’s electoral victory.
Many those trusts have since fallen from the rankings. However, Henderson Smaller Companies (LSE:HSL) and BlackRock Throgmorton (LSE:THRG) still kept a place in the top 10. Both trusts have seen some of the strongest one year returns among all investment trusts, with BlackRock Throgmorton returning investors 44.1% and Henderson Smaller Companies 34.1%.
Renewables Infrastructure (LSE:TRIG) climbed back up the rankings, now sitting at third place. The trust pays a handsome yield of 5.1%, but this comes at a considerable cost - a 17.5% premium. Added to that, the current premium is wider than the trust’s 12-month average premium figure, which stands at 13.4%.
City of London (LSE:CTY) saw a return to its (regular) number two spot. Run by Job Curtis, the trust is seen as relatively defensive, with a portfolio that can hold up in rockier market conditions. Over the past year it has produced a return of 12.4%.
Finsbury Growth & Income (LSE:FGT) fell slightly down the rankings, now sitting in sixth place. The trust has come under some pressure lately, with Morningstar removing its gold star status, citing liquidity risk.
| Rank | Investment trust | AIC sector | Rank change from October | 1-year return (as at 4 February 2020) | 3-year return |
|---|---|---|---|---|---|
| 1 | Scottish Mortgage (SMT) | Global | no change | 24.10% | 77.50% |
| 2 | City of London (LSE:CTY) | UK Equity Income | 2 | 12.40% | 21.30% |
| 3 | Renewables Infrastructure Group (LSE:TRIG) | Infrastructure | 4 | 17.30% | 40.08% |
| 4 | Polar Capital Technology (LSE:PCT) | Technology & Media | 6 | 35.10% | 84.70% |
| 5 | BlackRock Throgmorton Trust (LSE:THRG) | UK Smaller Companies | no change | 44.10% | 100.70% |
| 6 | Finsbury Growth & Income (LSE:FGT) | UK Equity Income | -3 | 16.40% | 43.70% |
| 7 | JPMorgan Emerging Markets (LSE:JMG) | Global Emerging Markets | new entry | 15.30% | 49.60% |
| 8 | Allianz Technology Trust (LSE:ATT) | Technology & Media | new entry | 35.70% | 114.20% |
| 9 | Smithson Investment Trust (LSE:SSON) | Global Smaller Companies | new entry | 24.60% | |
| 10 | Henderson Smaller Companies (LSE:HSL) | UK Smaller Companies | -9 | 34.10% | 69.20% |
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.