Interactive Investor

10 most popular investment trusts - February 2019

This trust slid down the rankings, possibly reflecting the less bearish attitude among investors.

13th March 2019 12:09

Tom Bailey from interactive investor

This trust slid down the rankings, possibly reflecting the less bearish attitude among investors.

Scottish Mortgage (LSE:SMT) continued to dominate the list of the most popular investment trusts among clients of our parent company interactive investor. The trust's three-year return currently stands at 100.6%.

City of London (LSE:CTY) slid down the rankings slightly compared to January, possibly reflecting the less bearish attitude among investors in February compared to previous months. City of London is often held as a safe, reliable income-payer. It may also have been impacted by continuing negativity towards the UK among investors in the run-up to Brexit.

Meanwhile, Smithson's Global Smaller Companies and Finsbury Growth & Income (LSE:FGT) - the only other UK-focused trust in the list - both climbed by one place.

Re-entering the rankings were Fidelity China Special (LSE:FCSS) and JPMorgan Emerging Markets (LSE:JMG). Both emerging markets and China faced a tough year in 2018 on the back of trade war fears and US dollar strength. For brave investors, this made for a good buying opportunity. However, as fears over China and emerging markets have eased, it would appear that more have bought the upside with the two trusts.

Those who opted for Fidelity China Special Situations were likely best rewarded, with the trust returning shareholders around 12% over the month.

February saw a number of new trusts joining the top 10. The Renewables Infrastructure Group (LSE:TRIG) made an appearance. It was added to Money Observer's Rated Fund list for the first time in 2019, replacing Bluefield Solar Income (LSE:BSIF), and currently yields around 5.5%.

The trust invests in renewable energy infrastructure, buying assets depending on where the most attractive subsidy regime for renewable energy is at a given point. Over the past three years the trust has provided investors with a 41.7% return.

Two new global trusts also joined the list. One was 2019 Rated Fund Bankers (LSE:BNKR), which provides global large company exposure and is managed by Janus Henderson. The trust has separate portfolios for each region, each run by the relevant regional specialists. Its three-year return stands at 60.7%.

Its fellow Rated Fund F&C Investment Trust (LSE:FCIT), which takes a highly diversified approach to a global mandate, is also in the rankings, at number eight.

Finally, Dunedin Enterprise (LSE:DNE) makes an appearance. This represents something of an anomaly in terms of reflecting current macro sentiment, as the private equity-focused trust is currently in the process of winding up. That means it is currently selling its holdings and returning the proceeds' net asset value to shareholders. This presents a potential profitable trade for investors who are able to buy into the trust at around 10% discount to net asset value.

However, warns Simon Elliott, head of investment trust research at Winterflood, investors should exercise some caution:

"Be careful, investors can be left in a trust with the stuff that can't be sold. Attractive holdings are sold first."

Baillie Gifford Shin Nippon (LSE:BGS), a staple of the most-bought list in 2018, found itself completely out of the rankings in February.

Investment trustAIC SectorRank change from previous month1-month return % (as of 4 March 2019)3-year return %
Scottish MortgageGlobalNo change1.4100.6
SmithsonGlobal Smaller Companies15.5 
Finsbury Growth & IncomeUK Equity Income12.843.1
City of LondonUK Equity Income-22.325.7
The Renewables Infrastructure GroupSector Specialist: Infrastructure - Renewable Energynew entry1.441.7
Dunedin EnterprisePrivate Equitynew entry6.7114.7
Fidelity China Special SituationsCountry Specialists: Asia Pacificnew entry12.286.1
F&CGlobalnew entry1.367.3
Bankers Investment trustGlobalnew entry3.160.7
JPMorgan Emerging MarketsGlobal Emerging Marketsnew entry070.1

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.