Interactive Investor

August's 10 most-bought trusts

21st September 2015 16:00

Rebecca Jones from interactive investor

Scottish Mortgage, Woodford Patient Capital and Biotech Growth Trust were the top three most-bought trusts on Interactive Investor in August, as the mega-trusts continue their tussle over the top spots.

Scottish Mortgage, a Rated Fund on our sister website Money Observer, was the most-bought trust in August for the fourth consecutive month, after snatching back the top spot from Woodford Patient Capital in May following the latter's record-breaking launch in April.

Moving up from third slot in July, Woodford Patient Capital took second place in August. This put Biotech Growth at number three, despite the fact that it fared better in the recent sell-off than Woodford's offering. It shed less than 3% in share price terms over the month to 18 September, compared to Woodford's 3.5% loss.

Another Money Observer Rated Fund, Finsbury Growth and Income was the fourth most-bought trust in August for the fifth consecutive month, as star manager Nick Train continues to deliver strong returns in difficult markets.

Shedding value

BlackRock World Mining held onto its place as fifth most-bought fund for the second month, despite continuing to haemorrhage assets as a result of plummeting energy and commodity prices. Over one year to 18 September, the trust's shares have shed 52% of their value while its net asset value (NAV) has declined 46%.

Multi-manager global vehicle Witan was the sixth most popular trust in August while UK equity income trust City of London was the seventh, with both hanging on to their places for the second consecutive month. Both are also Money Observer Rated Funds.

Making its first appearance in the top 10 since May, fellow Rated Fund Fidelity China Special Situations took eighth position in August. The trust suffered heavily during the China led sell-offs in August, and its shares have shed close to 25% of their value over the three months to 18 September.

However, this has seen the trust's share price discount to NAV widen to close to 15%, a bargain many investors have clearly been keen to snap up.

Similarly, Murray International - another Money Observer Rated Fund - made its first appearance in the top 10 for more than 18 months in August, in 10th place, as its emerging market exposure saw the price of its shares tumble.

Having consistently traded at a premium for over 12 months due to its high yield (5.6%) and strong performance record, Murray International fell to a discount of 5% in mid-August, marking an attractive entry point for new investors. As at 18 September that discount had narrowed to 1.4%, which is still well below its 12-month average of 3.9% premium.

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.