10 most-popular investment trusts: May 2019
Scottish Mortgage, Smithson and City of London are all here, but what about Woodford Patient Capital?
14th June 2019 11:57
by Tom Bailey from interactive investor
Scottish Mortgage, Smithson and City of London are all here, but what about Woodford Patient Capital?
Despite the market turmoil throughout May, the buying choices of investment trust investors largely remained the same, with Scottish Mortgage (LSE:SMT) and Smithson (LSE:SSON) the two most-bought trusts, according to data from interactive investor, our parent company.
Both trusts invest globally, with Scottish Mortgage holding a significant amount of global tech companies, leaving them more exposed than other trusts to a fallout of the US and China trade war as well as other risks to global growth.
Scottish Mortgage, for instance, lost 5.3% over the course of the month to 6 June, while Smithson declined by 2%.
Meanwhile, City of London (LSE:CTY), the defensive UK equity income trust, retained its third place on the list. Run by veteran investor Job Curtis, the trust lost 1.7%. Fellow UK equity income trust Finsbury Growth & Income (LSE:FGT) was also unchanged in the rankings, in fourth spot. Â
There were two new entries for May: Baillie Gifford Shin Nippon (LSE:BGS) and Greencoat UK Wind (LSE:UKW).
The former had previously been a regular on the most bought trusts list. However, over the past few months it had slightly fallen out of favour, with investors perhaps put off by its premium, which has typically stood at around the 5% mark over the past year – although there is no significant change to the premium at time of writing. The trust has produced eye-catching performance in recent years, having provided a five-year return of 159% to 10 June 2019.
The latter, Greencoat UK Wind, has not regularly appeared in the most bought trust list before. The trust invests primarily in both and on- and off-shore UK wind projects. Five-year performance stands at 74%. But its premium may be too high a price for some, as it stands at 13.6%.
Renewables Infrastructure Group (LSE:TRIG) kept its place in the rankings, albeit falling by three places. The trust was added to Money Observer's Rated Fund list for the first time in 2019, replacing Bluefield Solar Income (LSE:BSIF).
Elsewhere, Neil Woodford's Woodford Patient Capital Trust (LSE:WPCT) went up the rankings by three places.
However, the recent debacle over the suspension of Woodford's open-ended fund may now be causing some of those investors to kick themselves, with the trust down by roughly 20% over the course of the month to 6 June. Its share price has been under further pressure since.
Behind the fall was Woodford's decision to suspend trading for his open-ended fund after being unable to meet the demand for redemptions.
Woodford's trust, being a closed-ended vehicle, will not face those same issues. However, investors in the trust appear to have been spooked by the large crossover in holdings between the fund and trust, as well as a general loss of faith in the manager due to the suspension.
Allianz Technology (LSE:ATT) fell by three places, losing 4.3% over the month, while F&C Investment Trust (LSE:FCIT) kept it position in ninth place.
The two trusts exiting the top 10 were Fidelity China Special (LSE:FCSS) and Lindsell Train (LSE:LTI). As Money Observer pointed out last month, Lindsell Train's premium, which currently stands at 90%, is excessive.Â
| Investment trust | AIC Sector | Rank change from previous month | 1-month return (as at 6 June) | 3-year return |
|---|---|---|---|---|
| Scottish Mortgage | Global | No change | -5.3 | 97.5 |
| Smithson | Global smaller companies | No change | -2 | |
| City of London | UK equity income | No change | -1.7 | 22.8 |
| Finsbury Growth & Income | UK equity income | No change | 0.9 | 57.6 |
| Greencoat UK Wind | Sector Specialist: Infrastructure - Renewable Energy | New entry | 0.2 | 52.5 |
| Baillie Gifford Shin Nippon | Japanese Smaller Companies | New entry | -3 | 70.8 |
| Woodford Patient Capital | UK All Companies | 3 | -19.1 | -31.9 |
| The Renewables Infrastructure Group | Infrastructure | -3 | 2.3 | 53.5 |
| F&C | Global | No change | -1.3 | 64.6 |
| Allianz Technoloy | Technology & Media | -3 | -4.3 | 157.7 |
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. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â 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.