October's 10 most-bought trusts

After a sluggish couple of years for the Murray International investment trust, performance has been stellar in 2016, with the trust's net asset value up a whopping 47 per cent.

But despite enjoying a purple patch, posting gains well in excess of the average global equity income trust return of 20 per cent, the trust can be picked up at a discount of 5 per cent, which is wider than its one-year average discount figure of 2 per cent.

This opportunity has not escaped the eye of some of the investors who use our sister website Interactive Investor, as for the first time since January the trust has re-entered the top 10 most-bought trusts table.

Murray International, a Money Observer Rated Fund, has a meaty weighting to emerging markets, accounting for around 40 per cent of the portfolio at present. It has an impressive long-term track record for growing both capital and income.

INSTINCTIVELY CONTRARIAN

Manager Bruce Stout is instinctively contrarian and has been cutting down the trust's UK weighting over the past couple of years. The dividend yield stands at 4.1 per cent.

Elsewhere, there is little change in the top 10, with the top seven unchanged from September. Scottish Mortgage once again holds onto top spot, a position it has held since May 2015.

Woodford Patient Capital trust remains in second place, followed by Finsbury Growth & Income and Witan.

Nick Train, manager of Finsbury Growth & Income, recently penned a piece for Money Observer, highlighting why he thinks businesses that are becoming increasingly technologically savvy will reward investors handsomely in the years to come.

Income favourite City of London, which boasts 50 years of consecutive dividend rises, is in fifth place, followed by the specialist Biotech Growth trust.

Completing the top 10 are Fundsmith Emerging Equities Trust (moving up one position to eighth, despite relatively unremarkable mid-sector performance over the month) and Foreign & Colonial (moving down one position to ninth), while Murray International re-enters in 10th spot.

October's 10 most-bought trusts
RankFundAIC sectorChange since September1m SP total return to 2 Nov (%)3yr SP total return to 2 Nov (%)
1Scottish Mortgage*Global--2.372.5
2Woodford Patient CapitalUK all companies---5.3N/A
3Finsbury Growth & Income*UK equity income---0.341.2
4Witan*Global--1.940
5City of London*UK equity income---1.719.2
6Biotech GrowthBiotechnology & healthcare---8.164.3
7BlackRock World Mining*Commodities & natural resources--10.4-14.5
8Fundsmith Emerging EquitiesGlobal emerging markets equities+16N/A
9Foreign & Colonial*Global-1446.4
10Murray International*Global equity incomeNew entry1.216
Source: FE Trustnet. *denotes a Money Observer Rated Fund

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