Interactive Investor

March's 10 most-bought trusts

7th April 2016 11:59

Marina Gerner from interactive investor

Scottish Mortgage was the most-bought trust on the Interactive Investor platform in March.

The technology-dominated global equity vehicle, one of our sister magazine Money Observer's Rated Funds, has been the most-bought trust on Interactive Investor every month since February 2014. Only once, in April 2015, was it briefly toppled by Woodford Patient Capital during its record-breaking £800 million launch.

Since then, Woodford Patient Capital has tended to be the second most-bought trust, despite poor performance since its launch on 24 April. Over the last six months to 4 April it shed 12.5%. In addition, the trust's large share price premium to net asset value (NAV) has eroded.

Following the two top spots on the list, Money Observer Rated Fund Witan climbed one place to third position in March.

Established managers favoured

BlackRock World Mining - another Rated Fund - leapt four spots to fourth place in March.

While the trust suffered heavily from the slump in commodity prices, it has recently gained 8% over the month to 4 April and 23.8% over three months.

City of London and Finsbury Growth and Income both dropped two places to fifth and sixth most-bought respectively in March.

And Money Observer Rated Fund Biotech Growth Trust also fell two places from fifth most-bought trust in February to seventh in March, as the biotechnology sector continues to suffer.

Geoff Hsu, manager of Biotech Growth Trust, says the biotech sector "has recently declined, largely due to election year rhetoric in the US and fears over the sustainability of drug pricing".

"We do not expect major legislative changes regarding drug pricing in the US. At current valuations, we believe it is likely that the sector has bottomed and stocks will rebound based on positive clinical developments, Mergers and Acquisitions activity, and earnings growth," he adds.

Bankers Investment Trust - also a Money Observer Rated Fund - has climbed an impressive eight spots to be the eighth most-bought trust in March.

Rebecca O'Keeffe, head of investment at Interactive Investor, comments: "Significant volatility in global stockmarkets has seen investors stick with established fund managers - with Scottish Mortgage, Woodford Patient and Witan trusts all providing seasoned, experienced managers who have consistent track records in all market conditions.

"The commodities rout, which saw a 13-year low for the sector in late January, has also seen further interest from investors looking to capitalise on the oversold sector, who have been well rewarded by the bounce in prices."

March's 10 most-bought trusts
RankTrustAIC sectorChange since February1m SP return to 4 April (%)3yr SP return to 4 April (%)
1Scottish Mortgage*Global--3.459.3
2Woodford Patient CapitalUK all companies--2.1n/a
3Witan*Global12.427.6
4BlackRock World Mining*Commodities and natural resources412.2-51.9
5City of London*UK equity income-2-0.221.9
6Finsbury Income & Growth*UK equity income--0.139.8
7Biotech Growth*Biotechnology & healthcare-2-2.375.8
8Bankers*Global81.523.3
9Jupiter European Opportunities*Europe---0.143.4
10EdinburghUK equity income-3-1.535
*denotes Money Observer Rated Fund

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.