March's 10 most-bought trusts

Baillie Gifford's Scottish Mortgage was the most-bought trust in March for the 14th consecutive month according to data from Interactive Investor.

The Money Observer Rated Fund remains popular with retail investors due in part to a strong run of performance that has seen its share price rise 98% in the three years to 31 March compared to an average 42% gain from the Association of Investment Companies' global sector.

The £3.2 billion global generalist's low annual management fee of 0.3% and ongoing charges figure of 0.51% are also highly attractive thanks to Baillie Gifford's recent drive to reduce costs for shareholders.

The Biotech Growth trust was the second most-bought trust in March for the fifth successive month as it too continues to deliver strong returns despite a slight sell-off within the biotechnology sector during the past few months.

Biotech

In the three years to 31 March Biotech Growth has returned 236% in share price gains - significantly more than the 156.5% delivered by the biotechnology and healthcare sector. Managed by Frostrow Capital, the trust's portfolio has been run by US healthcare specialists OrbiMed since 1997.

Money Observer Rated Fund Finsbury Growth & Income was the third most-bought trust for the third consecutive month as manager Nick Train's brand-led, concentrated investment style continues to deliver strong returns for investors.

In the year to 31 March Finsbury Growth & Income is the best-performing trust in the UK equity income sector in share price terms, returning 17% compared to an average of just 5.4% from the latter.

BlackRock World Mining was the fourth most-bought trust in March, up from fifth in February as it continues to be popular with investors despite shedding 52% of its share price over the past three years and 36% over one year.

The decline is due both to falling commodity prices and to two large write downs, including £100 million lost on a dubious deal for royalties in a Sierra Leone mine that went into administration last year.

Despite its losses BlackRock World Mining pledged in its recent annual statement to continue paying its 7.2% dividend yield, a key reason the trust continues to attract investors. The trust also announced the departure of co-manager Catherine Raw, who will leave the trust at the end of April, leaving Evy Hambro as sole manager.

Money Observer Rated Fund Witan was the fifth most-bought trust in March, also rising one place since February as the global trust's new multi-manager mandate continues to pay dividends in terms of both share price and net asset value growth.

Fellow Money Observer Rated Fund Jupiter European Opportunities was the sixth most-bought trust, rising from seventh place in February. Managed by Alexander Darwall since its launch in 2000, the trust is a consistently strong performer, delivering first-quartile returns in seven of the last 10 years to 31 March.

Steady dividend

City of London was the seventh most-bought trust in March, falling three places from fourth in February. Managed by Henderson's Job Curtis since 2001, the UK equity income stalwart is a favourite among investors for its steady dividend (currently 3.8%) and predictable capital growth.

Making its debut in the top 10 most-bought list is International Biotechnology, which was the eighth most-bought trust in March. The trust is often overshadowed by Biotech Growth, however it enjoyed a strong period last year, returning 92.3% in share price gains in the 12 months to 31 March compared to 70% from Biotech Growth.

International Biotechnology is also on a deeper share price to net asset value discount than Biotech Growth - 12.5% compared to 7.7% - potentially making it more attractive to new investors.

Money Observer Rated Fund Temple Bar - another UK equity income stalwart - was the ninth most-bought fund in March for the second consecutive month. This is despite a run of poor performance that has pushed the trust into the bottom quartile of its sector over one and three years.

Temple Bar, managed by Investec's head of contrarian investing Alastair Mundy, shed 0.6% in the year to 31 March compared to an average gain of 5.4% from the sector and 17% from its top performer - Finsbury Growth & Income.

Aberdeen's New India Trust also made its debut in the top 10 as the 10th most-bought trust in March following a strong run for the trust on the back of the election of India's reformist prime minister Narenda Modi last year.

In the year to 31 March New India returned 56.4% in share price gains, making it the second best-performing trust in the country specialist Asia Pacific sector. However performance has waned over the past three months with many questioning whether the Indian stockmarket can maintain its momentum.

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.