Investors had a clear preference for tech-focused investment trusts.
Investors in May once again piled into technology focused investment trusts, as tech stocks take the clear lead in the coronavirus recovery.
Top of the list for the most bought investment trusts on interactive investor, Money Observer’s parent company, over the course of the month was Scottish Mortgage. The trust, which has a heavy focus on technology stocks, with Amazon and Tesla being among its largest holdings, has been a favourite with investors with years, regularly topping the most-bought list.
However, despite Scottish Mortgage’s regular appearance at the top of the list there was more of a broader preference for tech among investors. Polar Capital Technology retained second place. While the trust intermittently appears in the most-bought list it usually does so further down the table, but rose to second spot in April. 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 was fourth in the popularity rankings. Run by veteran tech investor Walter Price, the trust has a three-year return of above 100%, the best out of all those on the list. Over the past month the trust has returned 10.7%. The trust’s top two holding and Microsoft and Amazon.
Edinburgh Worldwide returned to the most-bought list having previously fallen out. The trust is not explicitly a tech trust, however it does have a strong focus on tech companies. One of the trust’s holdings is the US company Teladoc Health, a virtual healthcare company.
Worldwide Healthcare trust shot up the rankings, coming in at third place, up from seventh spot in April. This was likely the result of investors looking to play the healthcare theme in light of the pandemic. The trust has returned 9.2% over the month.
Smithson, launched by Terry Smith’s fund management company in 2018, gained one place. The trust has seen particularly strong performance of late, returning over 10% over the course of May. Its one-year performance is also strong at 24.7%.
Renewables Infrastructure Group climbed back up the rankings, now sitting at ninth place. The trust pays a handsome yield of 5.9%, but this comes at a considerable cost, with the trust sitting on a 9% premium.
Finsbury Growth & Income returned to the rankings. The trust, run by star managed Nick Train, had come under pressure prior to covid-19 crash due to concerns over liquidity.
The trust’s highly concentrated portfolio of high-quality companies, however, has seen the trust be a good long-term performer.
|Rank||Investment trust||AIC sector||Rank change from April||1-year return % (as at 1 June 2020)||3-year return %|
|1||Scottish Mortgage||Global||no change||45.5||86.9|
|2||Polar Capital Technology trust||Technology & Media||no change||48.1||66.7|
|3||Worldwide Healthcare trust||Sector Specialist: Biotechnology & Healthcare||4||39.6||53.1|
|4||Allianz Technology Trust||Technology & Media||1||32.9||103.9|
|5||Edinburgh Worldwide||Global Smaller Companies||New entry||35.2||96.9|
|6||City of London investment trust||UK Equity Income||-4||-14.2||-12.8|
|7||Smithson||Global Smaller Companies||1||24.7|
|9||The Renewables Infrastructure Group||Sector Specialist: Infrastructure - Renewable Energy||New entry||2.1||28.7|
|10||Finsbury Growth & Income||UK Equity Income||New entry||-4.5||20|