Interactive Investor

Top 10 most-popular investment trusts: November 2021

1st December 2021 10:57

Tom Bailey from interactive investor

There have been two new entries to our top 10 investment trust league table.

November saw two new investment trusts enter the top 10 most-bought rankings.

Shooting into second place was Allianz Technology Trust (LSE:ATT). The trust, as the name suggests, has a focus on technology. Its top 10 holdings has a number of the big tech giants, but the overall portfolio has a bias towards mid-caps. Of the famous tech names, Microsoft (NASDAQ:MSFT), Tesla (NASDAQ:TSLA) and Alphabet (NASDAQ:GOOGL) are among the biggest positions.

Over the past year, it has returned investors almost 27%, while over three years it has returned almost 170%.  Run by Walter Price, the trust has over the past couple of years been a favourite of investors. However, for much of 2021 it found itself outside the top 10 most-bought list.

The other new entry was Alliance Trust (LSE:ATST), in seventh position. Earlier in November, the trust announced it would raise its dividend by 32.5% as part of a broader move to start returning a higher amount of income to shareholders in future. Since April 2017, Alliance Trust has adopted a multi-manager approach, overseen by Willis Towers Watson.  

Scottish Mortgage (LSE:SMT), however, remained investors’ favourite trust. The global trust has been a permanent feature of the most-bought list, rarely losing its number one spot. With three-year performance of 207%, the appeal of this trust to investors is easy to understand. On a one-year basis, performance has also been strong, with returns standing at 36.7%.

City of London (LSE:CTY) is in third place. The trust has long been an investor favourite owing to its consistent dividend payment increases, having increased dividends for 55 consecutive years. However, over the short term it has struggled with performance, returning just 11% over three years. For a more detailed look at the trust, see the mini factsheet below.

In fourth place was HarbourVest Global Priv Equity (LSE:HVPE), reflecting a growing interest in private equity among investors. The trust entered the rankings in October.

The trust is a private equity-focused fund-of-funds. Its strategy is designed to give investors “part-ownership of a diversified portfolio of underlying private companies, spanning investment stages from early venture to large-cap buyouts”.

Over the past year, it has demonstrated strong performance, returning investors 52.3%. Over the past three years, the trust has returned 94.8%.

Edinburgh Worldwide (LSE:EWI) kept a place in the rankings in November, albeit down by six places, from third to ninth. In October, the trust re-entered the rankings having lost its place in August. Due to recent short-term performance lagging rivals, the trust had previously fell to an uncharacteristic discount, which has since closed.

Once again Smithson Investment Trust (LSE:SSON) has made an appearance on the list, up one place to fifth. Since its launch in 2018, it has been highly popular with investors.

Capital Gearing (LSE:CGT) fell one spot to sixth. The trust invests in a defensive manner. Its continued inclusion in the top 10 can be read as investors being in a less “risk off” mood. Capital Gearing has returned 13.6% over the past year.

Pacific Horizon (LSE:PHI) rose by one place. The Asia-Pacific focused trust has provided investors with a return of almost 200% over the past three years. Over the long term, returns are even better. Recent data from the Association of Investment Companies (AIC) showed that £1,000 put into the trust on 9/11 in 2001 would have been worth £27,080 after two decades.

Completing the top 10 is Monks (LSE:MNKS) which is viewed by many as a less aggressive version of Scottish Mortgage. Over one-year and three-year time periods it has returned 9.5% and 79.9%.

The two trusts no longer in the top 10 are Evy Hambro’s BlackRock World Mining Trust (LSE:BRWM) and Personal Assets (LSE:PNL).

Top 10 most-popular investment trusts: November 2021

Rank Trust Sector Rank change from October One year-performance to 30 November Three-year performance to 30 November 2021 (%)
1 Scottish Mortgage  Global no change 36.7 207
2 Allianz Technology  Technology & Media new entry 26.6 168.9
3 City of London UK Equity Income down 1 13.1 11
4 HarbourVest Global Private Equity Private Equity no change  52.2 94.8
5 Smithson Investment Trust Global Smaller Companies up 1 21.1 86.7
6 Capital Gearing Flexible Investment down 1 13.6 28.9
7 Alliance Trust  Global  new entry 16.3 47.2
8 Pacific Horizon Asia Pacific  up 1 26.5 198.1
9 Edinburgh Worldwide Global Smaller Companies down 6 -3.5 92.7
10 Monks  Global down 2 9.5 79.9

Source: interactive investor. Note: the top 10 is based on the number of “buys” during the month of November.

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