February's 10 most-bought trusts

Scottish Mortgage was the most-bought trust on the Interactive Investor platform in February, as the technology-dominated global equity vehicle celebrates a near-uninterrupted two-year reign over the top spot.

One of our sister magazine Money Observer's prestigious Rated Funds, Scottish Mortgage has been the most-bought trust on Interactive Investor every month since February 2014, except one: April 2015, when it was overtaken briefly by Woodford Patient Capital during the latter's record-breaking £800 million launch.

Since then, Woodford Patient Capital has tended to be the second most-bought trust on Interactive Investor, as was the case in February for the seventh consecutive month.

UK equity income stars

The Woodford trust holds onto its number two spot despite poor performance since its launch on 24 April, during which time shares have shed 15% of their value as the trust's large share price premium to net asset value (NAV) has eroded (at its high it stood at 15%), and its biotechnology holdings have underperformed.

Speaking recently to the press, however, manager Neil Woodford underlined that short-term underperformance is to be expected in a trust focused on small and early-stage companies, and that he is pressing on with his investment pipeline as planned.

Away from the two headliners, UK equity income trusts were most popular with Interactive Investor clients in February, as three made the top 10.

City of London climbed two places to third most bought in February, while Finsbury Growth and Income fell three places to be sixth most bought.

Finally, UK equity income fund Edinburgh Investment Trust - Neil Woodford's former charge during his time at Invesco Perpetual - re-entered the top 10, in at seventh place after a one-month absence.

Global trust and Money Observer Rated Fund Witanclimbed two places to fourth position last month, as the £1.4 billion trust's share price discount to NAV widened to more than 6% following a period of underperformance, presenting a buying opportunity for new investors.

The fallers

Fellow Money Observer Rated Fund Biotech Growth Trust fell one place from fourth most-bought trust in January to fifth in February, as the biotechnology sector continues to suffer from steep sell-offs; over the past six months to 4 March the trust has shed close to 21% of its share price value.

BlackRock World Mining - also a Money Observer Rated Fund - fell one place to eighth in February.

The trust has suffered heavy losses during the recent commodity rout, with shares shedding over 65% during the five years to 4 March. However, a recent bounce in the price of oil means the trust has gained nearly 31% in just one month.

Jupiter European Opportunities was the ninth most-bought trust for the second consecutive month as highly rated manager Alex Darwall continues to deliver strong performance, while beleaguered global trust Murray International occupied 10th place.

Like BlackRock World Mining, the trust - which is heavily exposed to emerging markets - has enjoyed a considerable bounce over the past month, with shares gaining more than 13%.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. 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.