Interactive Investor's most-traded trusts

Investment trusts tend to be favoured by "buy and hold" investors focused on long term goals rather than short term profits, thus it is no surprise to see that most of Interactive Investor's top five most traded trusts of 2015 are all well-known, well-established favourites.

However, the exception to this rule is Neil Woodford, whose first eponymous trust - Woodford Patient Capital - is the most traded trust on Interactive Investor in the six months to 1 July despite only being launched on 20 April. Elsewhere, however, global behemoths Scottish Mortgage and Witan continue to attract strong inflows while Biotech Growth draws investors on a seemingly unstoppable run of performance.

Woodford Patient Capital

The second fund to come from Neil Woodford's new investment venture, Woodford Investment Management, the Woodford Patient Capital Trust has proved unsurprisingly popular. Despite targeting just £200 million for its initial capital raise the trust launched with £800 million of assets under management in April, making it the biggest ever UK listed investment trust IPO. With it Woodford plans to develop his interest in early stage UK companies, particularly those involved in biotechnology and life sciences, and is targeting a long term annual return of 10%. However, the manager's popularity means the trust is currently trading on a share price premium to net asset value of nearly 9.6% - significantly more than any other UK equity trust and therefore a questionable entry point for new investors.

Scottish Mortgage

Were it not for Woodford Patient Capital, Money Observer Rated Fund Scottish Mortgage would undoubtedly be the most traded trust of 2015 so far, having topped Interactive Investor's regular most-bought list every month bar one since February 2014. Managed by Baillie Gifford veteran James Anderson alongside Tom Slater, the global growth trust has been the most consistent outperformer in the global sector for 10 years, returning 329.4% compared to just 125.4% from the latter since 1 July 2005. The trust is often criticised for its high weighting to technology stocks - the proportion being so large that the trust has stopped publishing sector weightings - however the managers' views appear to have been vindicated. Their early adoption of internet firms like China's Alibaba and Tencent has proved particularly fruitful.

Biotech Growth

Another perennial favourite, the Biotech Growth trust is the third most traded trust on Interactive Investor in 2015 so far. Consistently defying those who have called "time" on its run of outstanding returns, Biotech Growth continues to perform for its shareholders. In the ten years to 1 July 2015 it has delivered a staggering 735% in total share price returns - more than any other UK-listed investment trust over the period and nearly double that of its nearest competitor, the International Biotechnology Trust. The trust is managed by US biotechnology expert Orbimed Capital, which is widely considered the leader in the field. The volatility of the sector and subsequently, the share price, also means that attractive entry points often present themselves, while the portfolio remains solid.

Finsbury Growth & Income

Money Observer Rated Fund Finsbury Growth & Income is another long-term performer. Since current manager Nick Train took over the portfolio in 2000, the UK equity trust has delivered solid, generally first quartile returns while also paying a relatively attractive dividend (currently 2%). Train's is a brand-led, buy and hold investment style; the manager rarely holds more than 25 stocks and all of them tend to be household names as, in Train's view, a strong brand means a long life. His current top holdings include consumer products giant Unilever, alcohol conglomerate Diageo as well as Heineken, Burberry and the London Stock Exchange. A well-managed discount strategy also means that shares tend to trade close to par value, making it attractive for the more wary investor.

Witan

Global generalist Witan has undergone a remarkable transformation over the past five years. Under the leadership of current chief executive Andrew Bell the Money Observer Rated Fund has seen its share price discount narrow from a persistent average of around 12% before 2013 to trading at net asset value as at 28 August. This is largely thanks to Bell's adoption of a multi-manager mandate, which has seen the trust's regional allocation farmed out to a number of boutique asset managers including Lindsell Train, which handles a third of the UK equity exposure. Over three years the trust has clocked up the fifth highest share price total return in the Global sector while its 2% yield makes it a compelling choice for investors targeting income growth.

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.