Top 10 most popular investment trusts – July 2018

Global and tech orientated funds continued to dominate the rankings. 

Funds and Investment Trusts August 6, 2018 by Tom Bailey

10  most popular trusts in July 2018

Global and tech choices continue to dominate investor trust choices

Despite recent wobbles, shares in tech shares have been some of the strongest performers this year, and this has been reflected in investors’ investment trust preferences.

As was the case in June, global and tech-orientated trusts dominated the rankings of the 10 most purchased trusts on Interactive Investor (Money Observer’s sister website) in July, with the top three names unchanged.

Scottish Mortgage, which has a heavy weighting toward the tech sector, was the most-purchased trust, a position it has held for over a year. The trust has been one of the best performers, returning more than 100 per cent for investors over the past three years.

In at number two was Allianz Technology. Managed by Walter Price, the trust invests in the tech sector, as the name suggests, with a nearly 80 per cent weighting to US equities.

The trust has taken a slight knock recently, deciding to sell Facebook, one of its largest holdings, following the recent earning announcement that saw the social media giant’s share drop by 20 per cent. Its holding in Facebook is now 2 per cent of the trust’s portfolio, down from 4 per cent.

However, despite the recent dip, investors are likely to stick with the trust considering its track record: it has provided investors with returns of 40.9 per cent over the past year and 229.1 per cent since 2013.

Keeping its spot in third place was Edinburgh Worldwide, another high-performing global trust with a significant tech orientation. The sector composes over 33 per cent of the trust’s holdings. Over the past year it has returned investors almost 45 per cent.

Polar Capital Technology has also re-entered the rankings, while tech-heavy global sector trust Monks kept its position at seventh place.

Baillie Gifford Shin Nippon, another trust that has doubled investors’ returns over the past three years, also held its spot in the rankings. Despite the Japanese market’s disappointing performance over the past six months, the trust has still been able to provide strong returns, outperforming its sector peers.

A new edition to the rankings was the multi-asset trust Syncona, in sixth place. The specialist trust focuses on biotech and healthcare, split between UK and Japanese equities. The bitotech and healthcare sector has struggled over the past year.

Syncona, however, has bucked the trend, outperforming its peers by a wide margin and returning shareholders almost 46 per cent, though more than half of this has come from a dramatic shift in the already high premium. The trust usually trades on a premium of around 25 per cent but this moved to a massive 51.4 per cent in early summer.

Name AIC Sector 1-year share price return to 01/08/18 3-year share price return to 01/08/18
Scottish Mortgage Global 32.15% 107.43%
Allianz Technology Sector Specialist: Tech Media & Telecomm 48.22% 141.94%
Edinburgh Worldwide Global 47.89% 90.65%
Baillie Gifford Shin Nippon Japanese Smaller Companies 40.47% 138.37%
Finsbury Growth & Income UK Equity Income 13.19% 49.70%
Syncona Limited Sector Specialist: Biotechnology & Healthcare 94.91% 117.37%
Monks Global 23.04% 107.88%
Foreign & Colonial Global 22.64% 73.20%
Newriver REIT      
Polar Capital Technology Sector Specialist: Tech Media & Telecomm 25.73% 116.99%

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