November's 10 most-bought trusts

Scottish Mortgage has held onto its place as the most-bought investment trust since February as investors go for growth, according to data from Interactive Investor.

Money Observer Rated Fund Scottish Mortgage, which this year overtook Alliance Trust to become the biggest UK-domiciled global generalist trust, was the bestselling trust among Interactive Investor users for the 10th consecutive month in November.

Managed by Baillie Gifford's chief investment officer James Anderson alongside deputy manager Tom Slater, Scottish Mortgage is the second best-performing global trust in the year to 5 December, posting a 30% share price return over the period compared to just 10% from the global sector.

Over six months it is the best-performing global trust, delivering 25.8% in share price gains compared to an average of 6.5% from its peers.

Technology exposure

The trust has been buoyed by its huge overweight to technology stocks and particularly by its fifth largest holding: Chinese internet retailer Alibaba, which continues to trade more than 50% above the $68 share price established at its initial public offering in September.

Moving up one place from October, fellow Money Observer Rated Fund Biotech Growth Trust was the second most-bought trust in November which, like Scottish Mortgage, has also enjoyed a phenomenal period of performance.

In the year to 5 December US-based manager Orbimed Capital has swelled Biotech Growth's net asset value (NAV) by an impressive 48.5% while its share price has soared 62.3%. Over three years the trust has delivered an incredible 237.5% in NAV terms and 279% in share price gains.

BlackRock World Mining, another Money Observer Rated Fund, fell one place from second most-bought trust in October to third in November as investors continue to be enticed by its 6.4% dividend yield combined with a widening discount.

Over the past three months the trust has moved from trading at par to around a 12% share price discount to NAV following a £100 million loss on one of its mines in Sierra Leone, which has lead a number of analysts to express their disappointment in the trust's board.

However, with the trust having lost an average of 7.3% per year over the last five years and the outlook for commodities remaining decidedly bearish, BlackRock World Mining remains a risky choice.

Income choices

The fourth most-bought trust in November was Money Observer Rated Fund Finsbury Growth & Income Trust, which was one of only three income trusts to feature in the top 10 despite income trusts dominating investor selection over the past year.

The trust has been under the care of star manager Nick Train for nearly 14 years, during which time Train has applied his high-conviction, brand-led investment style to the portfolio.

Currently sporting less than 30 holdings in well-known UK companies including Unilever, the London Stock Exchange and Burberry, the trust has delivered 14.3% in share price gains over the past year and 85% over the past three while its dividend currently stands at just over 2%.

Joining Finsbury Growth & Income in the UK equity income category are regular top 10 constituents City of London Investment Trust and Money Observer Rated Fund Temple Bar Investment Trust, which were the fourth and eighth most-bought trusts in November respectively.

Global generalist Witan, another Money Observer Rated Fund, moved up one place from seventh most-bought trust in October to sixth in November as manager Andrew Bell continues to turn the once-ailing trust's fortunes around.

In the year to 5 December Witan has returned 21.2% in share price terms and 9% in NAV growth, helping to propel its three-year share price return to 80% compared to 44.6% from the global sector.

Emerging markets

In the emerging markets category Money Observer Rated Fund Templeton Emerging Markets trust was the seventh most-bought trust in November despite a disappointing run of performance that has seen manager Dr. Mark Mobius eke out just 2.8% over the past three years.

In comparison, fellow Money Observer Rated Fund BlackRock Frontiers Investment Trust has returned close to 80% in the three years to 5 December, helping to propel it into the top 10 for the first time as the 10 most-bought trust in November.

Managed by Sam Vecht and Emily Fletcher since launch in 2010, BlackRock Frontiers has seen its share price plunge 6.2% and its premium fall to a 1% discount in the past three months on negative sentiment over the region; price movement new investors may be capitalising on.

Fellow Rated Fund Strategic Equity Capital also made its debut in the top 10 this month, the first time a UK smaller companies trust has featured in the most-bought rankings since March. Launched in 2005, the private equity-style trust got off to an inauspicious start, however since current manager Stuart Widdowson took over in 2009 it has stormed ahead.

In the five years to 5 December the trust has delivered 286% in share price terms and 191.3% in NAV growth, making it one of the best-performing trusts in the UK smaller companies sector and helping to shrink its discount from an average of 9.4% over the past 12 months to close to a 1% premium today.

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.