Top 10 most-popular investment trusts: October 2024
There is change at the top, and a new entry to our table of the most-bought investment trusts.
1st November 2024 10:10
by Kyle Caldwell from interactive investor
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There is change at the top of our monthly most-bought investment trust table, with Greencoat UK Wind (LSE:UKW) taking pole position from BlackRock World Mining Trust (LSE:BRWM).
Greencoat UK Wind aims to provide investors with a yearly dividend that increases in line with RPI inflation. This has successfully been achieved each year since the trust launched in 2013. Its dividend yield currently stands at 7.2%.
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Investors buying today are seeking to take advantage of its discount, which is currently -16.5%. Trading on a discount is something the trust has in common with many peers in its sector. This area of the market fell out of favour amid rising interest rates, which caused bond yields to move higher. As a result, income seekers have more options and can take less risk, as the safest types of bonds - UK and US government bonds - offer yields of about 4%.
BlackRock World Mining has fallen a long way down the table to 10th place. The commodity-focused portfolio aims “to provide a diversified investment in mining and metal assets worldwide”. Copper and gold are favoured, accounting for about a quarter each.
City of London (LSE:CTY) has risen up the table to second place. Managed by Job Curtis since 1991, this trust is a favourite among income-seeking investors. Curtis adopts a conservative approach by focusing on companies with good cash generation. City has raised its dividend for 58 years in a row, making it one of 10 investment trusts with a track record of more than 50 years of income increases.
- Watch our video: why City of London has boosted banks to a 20-year high
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In third place is Scottish Mortgage (LSE:SMT). It invests in global businesses, including up to 30% in private companies, that are tapping into technological advancements. Over one year, its share price is up 37.0%, but losses of -41.0% over three years are sizeable. This is owing to its investment style suffering amid interest rate rises.
JPMorgan Global Growth & Income (LSE:JGGI), up two to fourth place, has a total return approach, aiming 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.
In fifth place is Alliance Witan (LSE:ALW), a multi-manager strategy that outsources the decision-making to a selection of fund managers that pick their 20 best ideas. Craig Baker, global chief investment officer at Willis Towers Watson, the investment manager for Alliance Trust, appeared on a recent On The Money podcast episode. Baker explained the reasons for the largest-ever investment trust merger involving Alliance Trust and Witan, and explained how the two trust portfolios would be blended.
In sixth place - the only new entry this month - is NextEnergy Solar Fund (LSE:NESF). It was last in our top 10 table in July. In a recent video interview with interactive investor, Stephen Rosser, investment director, gave an overview of the specialist solar energy and energy storage fund, which has a high dividend yield of 11%.
NextEnergy Solar Fund knocked Allianz Technology Trust (LSE:ATT) out of the top 10. The latter trust had been in the top 10 since June.
- Watch our video: a green fund and its 10% dividend yield
- Listen to our podcast: how and why Alliance Trust and Witan have joined forces
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Supermarket Income REIT (LSE:SUPR), in seventh place, says a “key pillar of its investment strategy is to invest in omnichannel stores. These are supermarkets that provide in-store shopping, but also operate as last-mile online grocery fulfilment centres for home delivery and click and collect.”
In eighth place is F&C Investment Trust (LSE:FCIT), another multi-manager approach. The global portfolio mainly uses in-house managers from fund firm Columbia Threadneedle and is overseen by Paul Niven, who decides on the asset allocation and gearing level.
Finally, in ninth place, is private equity trust 3i Group (LSE:III), which entered the top 10 in September. It has been the standout performer in the private equity sector over one, three and five years, with its successful stake in Dutch discount retailer Action a key performance driver.
However, 3i Group is trading on a huge premium of 48.2%. Over the long term, such large premiums tend not to be sustainable.
Top 10 most-popular investment trusts in October 2024
| Ranking | Investment trust | Change from September | One-year return to 30 October 2024 (%) | Three-year return to 30 October 2024 (%) |
| 1 | Greencoat UK Wind | Up two | 5.3 | 11.8 |
| 2 | City of London | Up three | 18.7 | 24.4 |
| 3 | Scottish Mortgage | Down one | 37.0 | -41 |
| 4 | JPMorgan Global Growth & Income | Up two | 29.0 | 46.4 |
| 5 | Alliance Witan | Down one | 24.6 | 25.6 |
| 6 | NextEnergy Solar Fund | New entry | 9.0 | -1.1 |
| 7 | Supermarket Income REIT | Up three | 5.5 | -27.6 |
| 8 | F&C Investment Trust | No change | 26.5 | 22.2 |
| 9 | 3i Group | Down two | 70.5 | 161 |
| 10 | BlackRock World Mining | Down nine | 5.7 | 15.3 |
Source: FE Analytics. Performance data to 30 October 2024. Rankings are based on the number of “buys” during October 2024.
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