January's 10 most-bought trusts

Baillie Gifford's Scottish Mortgage was Interactive Investor's most-bought investment trust for the 12th consecutive month in January, marking a full year at the top for the global generalist vehicle.

With nearly £3.1 billion of assets under management Money Observer Rated Fund Scottish Mortgage overtook Alliance Trust as the UK's largest global generalist trust in 2014 following consistently strong performance.

Managed by James Anderson and Tom Slater, Scottish Mortgage has grown its net asset value (NAV) by 21% over the 12 months to 10 February and 72% over three years to the same date; more than any other global trust in each respective period.

Technology exposure 

Although Anderson and Slater insist that Scottish Mortgage is not a technology fund, the trust is heavily invested in technology stocks with the majority of its portfolio invested in the sector. Its top 10 holdings include US internet giants Amazon, Google, Facebook alongside Chinese online firms Alibaba (BABA) and Tencent (TCEHY).

Making its first appearance in the top 10 for more than a year was Fidelity China Special Situations, which was the ninth most-bought trust in January. The trust was launched by veteran fund manager Anthony Bolton to much fanfare in 2010, however it soon came up against difficulties and lost 21% of its share price in its first two years.

Dale Nicholls has managed the fund since April 2014 since when it has enjoyed a change in fortune, and in the 12 months to 10 February the trust has returned 30% in share price gains while growing its NAV 34%.

The second most-bought trust in January was Money Observer Rated Fund The Biotech Growth Trust, which holds onto its spot for the third consecutive month.

Managed for Frostrow Capital by US biotech specialist Orbimed Capital, the trust has delivered 40% in NAV growth over the past year and 203% over the past three years as the biotechnology sector continues to enjoy strong gains.

The Finsbury Growth & Income Trust - another Money Observer Rated Fund - was the third most-bought trust in January, rising from the fourth most bought in December. Nick Train has managed the trust since 2000 during which time his highly concentrated, brand-led investment style has led to strong gains.

In the 10 years to 10 February the trust has delivered 225% in NAV growth and 226% in share price growth, more than any other trust in the UK equity income sector. Train's portfolio of less than 30 holdings consists largely of well-known global names including Heineken, Burberry and The Daily Mail and General Trust - owners of the Daily Mail newspaper.

Remarkable recovery

Money Observer Rated Fund Witan was the fourth most-bought trust last month, up two places from December. The 106-year-old trust has staged a remarkable recovery over the past few years following the appointment of Andrew Bell as manager.

Over the past year the company has returned 20% in share price gains compared to an average of 16% from the global sector. This has helped the trust to narrow its share price to NAV discount, moving from an average discount of 2.1% over the past 12 months to its current 0.5% discount.

The BlackRock World Mining Trust was the fifth most-bought trust in January, falling from third most bought in both December and November. The trust's popularity has been little dented by well-publicised write downs that have seen it lose over £100 million in recent months, nor by tumbling commodity prices.

Managed by Evy Hambro since 2008, over the past year to 10 February BlackRock World Mining has lost 26% of its NAV and 32% of its share price, while over three years it has shed 54% and 51% respectively. It does, however, pay an attractive 6.5% annual dividend.

Money Observer Rated Fund The Bankers Investment Trust re-entered the top 10 for the first time since October as the sixth most-bought investment trust in January, followed by perennial favourite The City of London Investment Trust which was down two spots in seventh place. Fellow Money Observer Rated Fund Temple Bar rose one place to become the eighth most-bought investment trust in January.

Jupiter European Opportunities re-entered the top 10 for the first time since October 2014 as the 10th most-bought trust as highly rated manager Alexander Darwall continues to outperform in difficult markets.

Over the past year he has delivered 13% in both NAV and share price gains while Jupiter European Opportunities is the best performing larger European trust over both five and 10 years.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. 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.