Interactive Investor

Top 10 most popular investment trusts – April 2020

In a bid to play the pandemic, investors rushed to add a healthcare focused trust to their holdings. 

4th May 2020 10:52

Tom Bailey from interactive investor

In a bid to play the pandemic, investors rushed to add a healthcare focused trust to their holdings. 

Despite the world changing events around the world, investment trust investors once again proved reluctant to change their buying choices in April, according to the latest data from interactive investor (Money Observer’s parent company). As with the previous month, the usual big-name trusts, such as Scottish Mortgage, City of London, Smithson, Finsbury Growth & Income, all still made an appearance.

Indeed, one of only two new entries to the most bought list in April was Worldwide Healthcare Trust. A Money Observer Rated Fund since 2013, it runs a portfolio of pharmaceutical, biotechnology and healthcare equipment, technology and services companies worldwide. The new inclusion of this trust in is likely reflective of investors looking to play the pandemic – finding a trust with holdings likely to benefit from the global effort to treat and halt the spread of coronavirus. Over the past month, it has returned 11.6 %.

As noted above, broadly the choices stayed the same. Scottish Mortgage retained its place in the top spot, a position it has occupied for the past couple of years. The trust’s one-month return was an enviable 15.8%, with a number of its technology holdings performing well over the period.

Smithson, launched by Terry Smith’s fund management company in 2018, lost a few places but remained in the top 10 as it has for almost every month since its launch. The trust has seen particularly strong performance of late, returning 13.3% over the month. Its one-year performance is more modest at 7.7%.

City of London, usually the second most bought trust in our rankings, slipped one place.

However, the most bought rankings do show one trend: a pick up in interest in US tech. Polar Capital Technology, a semi-regular on the most-bought list, shot up the rankings this month by five places, becoming the second most bought.

Allianz Technology Trust also climbed the rankings by five places compared to the previous month, coming in at fifth place.

Both trusts are heavily exposed to large cap US tech stocks. Polar Capital Technology, as the name suggests, invests in tech stocks with around 76% in US listed companies. Its largest holdings include Microsoft and Apple, Facebook, Amazon and Alphabet (Google).

Allianz Technology Trust, managed by Walter Price, has similar stocks but with an even higher exposure to US-listed companies.

Investors likely climbed into these two trusts due to the relatively safety they have offered in the coronavirus sell-offs. Despite the recent market declines, US tech stocks continued their relative dominance, falling less than the broader market.

This has served these trusts and their investors well. Over the past month, Polar Capital has returned over 13%, while Allianz Technology Trust has gained 10.1 %. The latter is the best performing trust over the past three years, doubling investors’ money.  

RankInvestment trustAIC sectorRank change from March1-year return % (as at 2 March 2020)3-year return %
1Scottish MortgageGlobalno change2780.5
2Polar Capital Technology trustTechnology & Media53187.3
3City of London investment trustUK Equity Income-1-15.2-7.3
4Alliance TrustGlobal-1-4.713.1
5Allianz Technology TrustTechnology & Media514100
6Finsbury Growth & IncomeUK Equity Income-2-9.417.8
7Worldwide Healthcare trustSector Specialist: Biotechnology & Healthcarenew entry26.945.4
8SmithsonGlobal Smaller Companies-37.7 
9Hammerson (REIT)Unclassified new entry-78-89
10F&C Investment Trust Global-1-6.220.3

 

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.