Top 10 most popular investment trusts: June 2020

by Tom Bailey from interactive investor |

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Investors still had a clear preference for tech-focused investment trusts. 

Investors in June continued to be in a “risk-on” mindset, choosing to pile into a mixture of investment trusts that primarily focus on growth stocks.

According to data provided by interactive investor, Money Observer’s parent company, the most bought investment trust was once again Scottish Mortgage. The trust consistently occupies the number one spot, with a one-year return of 55.4%.

The trust, which has a heavy focus on technology stocks, with Amazon and Tesla being among its largest holdings, has generally fared well during the tech pandemic.

Polar Capital Technology retained second place, just as it had done in May. While the trust has occasionally appeared in the most-bought list, it usually does so further down the table. However, with investors seemingly hungry for tech stocks during the pandemic, it has managed to top the list several times in the past few months.

The trust’s largest holding is Microsoft, which has been among the best-performing stocks so far this year, thanks to its products and services either being immune to coronavirus pressures or boosted by lockdown.

Allianz Technology Trust rose to third place, one rank higher than in May. Managed by veteran tech investor Walter Price, the trust has the most impressive three-year return of all the trusts on the list, sitting at just below 130%. The trust’s top two holdings are Microsoft and Amazon.

Continuing the tech theme, Monks investment trust returned to the top 10 in June. While not a tech specialist trust like the Allianz or Polar Capital trusts, its portfolio is heavily weighted to tech companies. For example, its largest holdings in descending order are Amazon, Naspers, Alphabet (Google) and Alibaba.

Edinburgh Worldwide rose by one place. Like Monks, the trust is not explicitly a tech trust, however it also has a strong focus on tech companies. One of the trust’s holdings is the US company Teladoc Health, a virtual healthcare company that has seen its share price surge due to the pandemic.

Worldwide Healthcare kept its place in the top 10 rankings, albeit falling three places compared to last month. Investors, it appears, are still trying to buy the healthcare theme in the wake of the global pandemic. Investors, however, should perhaps be wary they may have missed the boat on this theme and will be buying companies at historically high valuations.  

A notable new entry is BlackRock World Mining trust. The trust, managed by Evy Hambro, has not appeared on the most-bought list for a long time. The trust invests in the shares of companies that mine both base metals and precious metals.

The Renewables Infrastructure Group and Finsbury Growth & Income, which were in ninth and tenth place, respectively, in May’s most-bought trust list, both exited the top 10 in June.

Investment Trust AIC sector Rank change from May 1-year return % (as at 1 July 2020) 3-year return %
Scottish Mortgage Global no change 55.4 108.8
Polar Capital Technology Trust Technology & Media no change 52.1 110
Allianz Technology Technology & Media 1 37 129.9
Edinburgh Worldwide Global Smaller Companies 1 35.9 111.1
City of London UK Equity Income 1 -16.2 -8.3
Worldwide Healthcare Sector Specialist: Biotechnology & Healthcare -3 34.2 49.6
Smithson Global Smaller Companies no change 19.1  
Alliance Trust Global no change 0.3 18.3
Monks Global new entry 15.3 54.1
BlackRock World Mining Trust Sector Specialist: Commodities & Natural Resources new entry 8.2 33.9

 

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.

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