10 Most Popular Investment Trusts in Q1

The 10 most searched for investment trusts on Morningstar.co.uk in the first quarter show investors are sticking with simplicity despite the trend for alternative fund launches

Szymon Idzikowski 10 April, 2013 | 9:59AM
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The most frequently viewed investment trusts in the first quarter this year have been large, well-known names with strong dividend histories and solid long-term performance.

Indeed, the investment company structure lends itself well to dividend payments to shareholders. The board of directors can retain up to 15% of a fund’s dividend income every year in its revenue reserve account and use that income in future years to smooth, or top up, dividend pay-outs during leaner years.

The boards of the majority of these 10 most popular trusts have successfully used this tool, enabling them to stay true to their progressive income commitments.

Income has been a very popular theme in recent times, with interest rates staying so low, so it’s no surprise that these steady payers are among the most researched funds.

Interestingly, nine of these funds invest in equity and one follows a flexible allocation mandate. Yet in the last year the majority of new investment company launches have been in alternatives, mainly infrastructure. This makes sense given the less-liquid nature of such strategies, but their lack of presence among the most researched funds could suggest that retail investors are, for now, sticking with simplicity. These more sophisticated strategies are popular among professional investors, however, such as wealth managers. 

City of London (CTY)
Rated Gold by Morningstar analysts

Edinburgh Investment (EDIN)
Rated Gold by Morningstar analysts

Personal Assets (PNL)
Rated Gold by Morningstar analysts

Murray International (MYI)
Rated Gold by Morningstar analysts

Aberdeen Asian Smaller Companies (AAS)
Rated Gold by Morningstar analysts

Scottish Mortgage (SMT)
Rated Gold by Morningstar analysts

Finsbury Growth & Income (FGT)
Rated Gold by Morningstar analysts

Jupiter European Opportunities (JEO)
Rated Gold by Morningstar analysts

Scottish Oriental Smaller Companies (SST)
Rated Bronze by Morningstar analysts

Perpetual Income & Growth (PLI)
Rated Gold by Morningstar analysts

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aberdeen Standard Asia Focus Ord260.21 GBX0.86Rating
City of London Ord420.00 GBX2.07Rating
Edinburgh Investment Ord623.00 GBX2.64Rating
European Opportunities Trust706.00 GBX2.77Rating
Finsbury Growth & Income Ord788.00 GBX1.68Rating
Murray International Ord1,268.00 GBX2.59Rating
Personal Assets Ord48,650.00 GBX0.83Rating
Scottish Mortgage Ord736.45 GBX-0.07Rating
Scottish Oriental Smaller Cos Ord1,075.00 GBX0.47Rating

About Author

Szymon Idzikowski

Szymon Idzikowski  is a closed-end fund analyst with Morningstar.