Top 10 most-popular investment trusts: February 2025

Technology-focused investment trusts remain hugely popular, with Scottish Mortgage (LSE:SMT) retaining the top spot and Allianz Technology Trust (LSE:ATT) returning to the top 10, while peer Polar Capital Technology (LSE:PCT) came sixth in the rankings.

Scottish Mortgage has posted a strong 12 months of gains, with the shares rising 30.7%, as optimism over the potential of artificial intelligence (AI) spread through markets. Over three years, returns of 4.8% are the result of its investment style falling out of favour amid interest rate rises. The trust invests in global businesses, including up to 30% in private companies that are tapping into technological advancements.

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Allianz Technology returned to the top 10 for the first time since last September. It has six of the “Magnificent Seven” US technology stocks in top 10 positions, with Tesla Inc (NASDAQ:TSLA) the exception. As well as AI, cybersecurity is another key investment sector.

Polar Capital Technology holds five of the Magnificent Seven, excluding Amazon.com Inc (NASDAQ:AMZN) and Tesla, in its top 10. The trust invests in technology themes and looks to own the best companies to attempt to profit. Its themes are online advertising/commerce, software as a service, cloud infrastructure/security, digital entertainment, data economy/AI and connectivity/5G.

Unchanged in second place is Greencoat UK Wind (LSE:UKW). As the name suggests, it invests in UK wind farms, aiming to provide investors with a yearly dividend that increases in line with RPI inflation. It has successfully achieved this each year since the trust launched in 2013.

It was announced last week that longstanding fund manager Stephen Lilley will step down from the investment trust in two months’ time. Lilley has been manager of the renewable infrastructure trust since launch in 2013 alongside Laurence Fumagalli, who stepped down around a year ago.

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Rising bond yields are putting pressure on infrastructure and property investment trusts as returns from “risk-free” developed-market bonds compete with strategies that aim to generate a steady income for shareholders.

While Greencoat UK Wind’s income track record is strong, and its current yield of 9.3% eye-catching, investors are nursing losses over one and three years of -12.5% and -9.1%.

The same is true for new entry Renewables Infrastructure Group (LSE:TRIG), in ninth place. The trust, which invests in wind farms, solar parks and battery storage projects in the UK and Europe, hasn’t appeared in the top 10 since last June. It has a yield of 9.9%, but has posted sizeable losses over one and three years of -19.9% and -30.3%. Greencoat UK Wind’s current discount is -25.2%, while The Renewables Infrastructure Group’s discount is -34.5%.

However, it appears that some investors are viewing the discounts and yields as an opportunity. Given that the interest-rate cycle has potentially peaked, this sector could experience a significant shift in sentiment.

In third place, JPMorgan Global Growth & Income (LSE:JGGI) aims to outperform the MSCI All Country World index over the long term. It is “style neutral”, meaning it does not favour value or growth, for example. It holds 50 “best idea” stocks, and looks to trim its winners and recycle the money into underperformers that it still has conviction in.

The trust makes quarterly distributions with the intention of paying dividends totalling at least 4% a year. Last month, a merger was proposed with Henderson International Income (LSE:HINT). If given the green light by shareholders, the current managers and investment objective of JPMorgan Global Growth & Income will remain the same.

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3i Group (LSE:III), in fourth place, is another new entry. It is no stranger to the top 10, having last featured in December. Focused on private equity and infrastructure, this trust appeals to those seeking high-growth opportunities in alternative investments. Beware though, it trades on a 62.4% premium to its net asset value and is very concentrated in just one company, European discount retailer Action. Its position in Action has been very successful, which has led to strong returns over both one and three years, up 63.4% and 224%.

F&C Investment Trust (LSE:FCIT) is in fifth place. This trust adopts a global multi-manager approach, meaning the decision-making is outsourced to a selection of fund managers. It mainly using in-house managers from fund firm Columbia Threadneedle. F&C is overseen by Paul Niven, who decides on the asset allocation and gearing level.

Alliance Witan (LSE:ALW), in seventh place, also has a global multi-manager strategy. It asks a selection of external fund managers to pick 20 of their best ideas and is managed by Willis Towers Watson.

Completing the top 10 is property portfolio Assura (LSE:AGR), which specialises in healthcare. Its current dividend yield is 8%. In common with other property strategies, it’s deep in the red over three years, down -20.1%. However, its one-year return of 6.7% could be the start of a turnaround.

Supermarket Income REIT (LSE:SUPR), Pershing Square Holdings (LSE:PSH) and City of London (LSE:CTY) all fell out of the top 10. 

Top 10 most-popular investment trusts in February 2025

Data to 28 February 2025. Source: FE Fundinfo. Note: the top 10 is based on the number of “buys” during the month of February.