10 most popular investment trusts in September 2018
9th October 2018 10:54
by Tom Bailey from interactive investor
A China trust was snapped up by investors looking for a bargain while Woodford Patient Capital saw renewed investor interest, reports Tom Bailey.Â
The consensus among financial commentators is that emerging markets are cheap right now due to fears surrounding the China/US trade war, among other reasons. However, that hasn't meant much of a pickup in popularity for the sector among investors, according to data from interactive investor.
The only trust with large emerging market holdings to appear in the top 10 most-bought trust in September was Fidelity China Special Situations. Having been the tenth most popular investment trust in August this year, last month it shot up the rankings to number four. This growth in popularity is presumably on the back of more adventurous investors seeing now as a good time to buy into the trust after share price valuations had fallen, or indeed to top up holdings.
However, investment trust investors were more interested in the seeming safe global equity focused investment trusts.
Scottish Mortgage, one of the best performing investment trusts in recent years, maintained its top spot, a position it has held for over a year. One of Scottish Mortgage's biggest holdings is Tesla accounting for around 5% its portfolio. Recent controversies surrounding the company's chief executive Elon Musk, however, hasn't dented investor's confidence in the investment trust.
Edinburgh Worldwide, also a Baillie Gifford managed fund with a US technology tilt, edged up two spaces in the rankings. Edinburgh Worldwide has been one of the best performing trusts over the past year, managing to return investors 47.4%, the highest of all trusts in the rankings.
These trusts invest heavily in US technology equities which have been the most popular and best performing stocks of 2018. Indeed, according to investor surveys, US equities are seen as a safe haven in an increasingly volatile world.
Continuing on this theme, investors also invested in tech specialist trusts which also have a heavy US tilt. Allianz Technology, run by veteran investor Walter Price, edged up in the rankings, taking the second spot while Polar Capital Technology entered the rankings.
Woodford Patient Capital saw its re-entry into the top 10 following a relative pick up in performance. Over the past three years the star investors'Â trust has lost around 18% due to a number of unfortunate trades.
However, performance picked up slightly in September, with one of the trust's holdings Industrial Heat revalued upwards by 357%, adding 8.8% to Woodford Patient Capital's net asset value. This upswing in performance may have convinced some investors that Woodford Patient Capital is still a good hold for the long term.
Finally, City of London re-entered the top 10 list. The defensive income focused fund may have seen a pickup in popularity as more investors start to become wary of either a market dip or economic downturn. While the trust has only returned investors a 2.5% return over the past year, in many investor's eyes, it is a safe bet with which to weather any impending market turbulence.
| Trust | Sector | Change since August | 1-year return (up to 2 October 2018) | 3-year return (up to 2 October 2018) |
|---|---|---|---|---|
| Scottish Mortgage | Global | -- | 29% | 129.6% |
| Allianz Technology | Sector Specialist: Tech Media & Telecomm | +1 | 46.2% | 179.6% |
| City of London | UK Equity Income | New entrant | 2.5% | 25.6% |
| Edinburgh Worldwide | Global | +2 | 47.4% | 130.6% |
| Fidelity China Special Situations | Country Specialists: Asia Pacific | +4 | -2.7% | 85% |
| Baillie Gifford Shin Nippon | Japanese Smaller Companies | -2 | 38.5% | 175.7% |
| Finsbury Growth & Income | UK Equity Income | New entrant | 11.7% | 52.9% |
| Foreign & Colonial | Global | -3 | 19.8% | 82.8% |
| Woodford Patient Capital | UK All Companies | New entrant | -9.1% | -18.9% |
| Polar Capital Technology | Sector Specialist: Tech Media & Telecomm | New entrant | 25.8% | 145.3% |
Source: interactive investor  Past performance is not a guide to future performance
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.