Smithson tops the charts in October, as investors buy up bargains

Laura Suter
5 November 2018

•    Smithson becomes the most bought trust in October via AJ Bell Youinvest – just nine days after launch
•    Investors use October’s market selloff as a buying opportunity
•    Investment Trusts that saw their premiums close were snapped up


Top selling funds and trusts in October via AJ Bell Youinvest

Smithson Investment Trust

Scottish Mortgage Investment Trust

Fundsmith Equity

Scottish Investment Trust

AJ Bell Passive portfolios

Lindsell Train Investment Trust

iShares Core FTSE 100 UCITS ETF

Vanguard FTSE 250 UCITS ETF

Vanguard S&P 500 UCITS ETF

Vanguard LifeStrategy funds

Finsbury Growth and Income Investment Trust

Vanguard FTSE All World UCITS ETF

City of London Investment Trust

Henderson Smaller Companies

Polar Capital Global Technology

Source: AJ Bell

Laura Suter, personal finance analyst at investment platform AJ Bell, comments:

“Terry Smith’s Smithson trust has immediately leapt to the top of the charts on our platform, with investors snapping up the star fund manager’s latest offering. The trust broke rival Neil Woodford’s fundraising record when it launched, raising £822m and smashing through the initial £250m target. 

“Since its launch on October 19th the trust has risen 7.5%, and so is already standing at a decent premium to net asset value. This is despite the fact that the trust has not yet invested its assets, but investors are banking on Smith and his team to replicate their previous impressive performance.

“Investors have faced a rough ride in the past few months. In October the FTSE All Share had its worst month’s performance in more than three years, with the past 10 years only seeing eight months that had greater falls. What’s more the FTSE 100 is down 5% over September and October, leaving it down 7% in the year so far. However, investors weren’t spooked by the sea of red across markets and have been snapping up bargains.

“Investment trusts were more popular than usual in October, as investors pounced on perennial favourites who had seen their premiums fall or even hit a discount. 

“One example was the £7bn Scottish Mortgage Investment Trust, run by Baillie Gifford. The trust saw its premium narrow in October amid worries about the continued growth of the US tech giants it invests in heavily. But many investors saw this as a buying opportunity, making it the second most popular fund in the month. 

“Elsewhere investors snapped up passive funds and index trackers, across the spread of FTSE 100, FTSE 250 and S&P 500, as well as Vanguard’s LifeStrategy portfolios and AJ Bell’s own passive fund range.”

Laura Suter
Personal Finance Analyst
Laura Suter is personal finance analyst at AJ Bell. She is a multi-award winning former financial journalist, having specialised in investments. Laura joined AJ Bell from the Daily Telegraph, where she was investment editor. She has previously worked for adviser publications Money Marketing and Money Management, and has worked for an investment publication in New York. She has a degree in Journalism Studies from University of Sheffield.
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