Top 10 most popular investment trusts – June 2018

Tech-focused trusts remained among investors’ favourites in June's list of most-bought trusts

Tech-focused trusts remained among investors’ favourites in June with Scottish Mortgage the most-purchased investment trust in the month, according to data from Interactive Investor.

The £7.6bn trust has more than a quarter of its assets in technology companies, with internet giants Amazon, Alibaba and Tencent taking the top three spots in its portfolio. While some commentators have questioned whether valuations in the tech sector are starting to look overstretched, it’s a strategy which seems to be working for Scottish Mortgage – the trust has returned a hefty 19.8 per cent over the past three months alone and has been branded a so-called dividend hero after increasing its pay out every year for the past 35 years.

Allianz Technology, which was last month’s top-selling fund, slipped to second place in May while Edinburgh Worldwide maintained its position as third best seller.

Despite a bad month for shares in housebuilders, Land Securities remained popular with investors. The recently rebranded investment company – now going under the name Landsec – owns more than 100 properties across the UK including a retail park in Northampton, offices in London and hotels in Manchester. Many investors are doubtless attracted to the company by its 4.7 per cent dividend yield.

Three Asian-focused have made it to the bestsellers list in the month. Baillie Gifford Shin Nippon is trading at a 5.5 per cent premium. It’s another trust with a tech bias, with more than a third of its assets in the sector including CyberAgent, which operates an internet TV station, and computer chip maker MegaChips. The trust, which focuses on investments in Japan, is up 34.1 per cent over the past year.

Perhaps it’s the hefty 14.4 per cent discount that has put Fidelity China Special Situations among the most popular trusts for the month. The trust, which looks for out of favour stocks in China, has returned 16.4 per cent over the past year. Pacific Horizon, meanwhile, is up 34 per cent over that period.

Monks Investment Trust is in seventh spot for the month, closely followed by City of London. The latter has long been popular with income investors, so it’s no surprise to see the trust among the top sellers for the month. Currently yielding 4.2 per cent, it has increased its dividend pay out for 51 years in a row. Finsbury Growth & Income, in ninth position, is another high-performing favourite from the UK equity income sector, though it yields just 1.8 per cent.

 

  Name AIC Sector 1 year share price return to 03/07/18 3-year share price return to 03/07/18
1 Scottish Mortgage Global 32.9% 104.7%
2 Allianz Technology Tech, Media & Telecomm 43.2% 131.0%
3 Edinburgh Worldwide Global 44.3% 81.2%
4 Land Securities n/a -8.0% -19.6%
5 Ballie Gifford Shin Nippon Japanese Smaller Companies 34.1% 139.1%
6 Fidelity China Special Situations Country Specialists: Asia Pacific 16.4% 62.5%
7 Monks Investment Trust Global 21.0% 96.8%
8 City of London UK Equity Income 5.0% 21.2%
9 Finsbury Growth & Income UK Equity Income 15.2% 47.5%
10 Pacific Horizon Asia Pacific ex Japan 20.3% 64.7%        
         

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