Global and UK Equity Income sectors dominated the list of most viewed investment trusts on the AIC website last year.
The Association of Investment Companies has published its rankings for last year’s top 20 most viewed member investment companies on its website, where investors can research the performance and data of the member trusts.
Those trusts with a dividend yield of 3 per cent or more took up 12 places on the list, which Annabel Brodie-Smith, communications director at the AIC, said was unsurprising given investors’ appetite for income.
The £1.5bn Murray International trust, managed by Bruce Stout, took the top spot, after it achieved a share price total return of 50 per cent last year.
Baillie Gifford’s £5.1bn Scottish Mortgage Investment trust, which is run by James Anderson and Tom Slater, was ranked second on the list, after having increased its dividend every year for 33 years.
Meanwhile the £1.4bn City of London Investment trust became the first investment company to reach 50 years of consecutive dividend increases and was the third most viewed last year.
Ms Brodie-Smith said: “Last year was full of surprises, but one constant remains - investors are still on the hunt for income, with the rankings demonstrating demand for income-focused companies.”
Just over half of the top 20 trusts had increased their dividends for at least a decade.
The AIC communications head also pointed out that eight companies are so-called ‘dividend heroes’, which have increased their dividend for at least 20 years.
2016 AIC website investment company rankings
Company | AIC sector | Rank |
Murray International | Global Equity Income | 1 |
Scottish Mortgage | Global | 2 |
City of London | UK Equity Income | 3 |
BlackRock Income Strategies | Flexible Investment | 4 |
Finsbury Growth & Income | UK Equity Income | 5 |
Foreign & Colonial Investment Trust | Global | 6 |
Edinburgh Investment | UK Equity Income | 7 |
Temple Bar | UK Equity Income | 8 |
RIT Capital Partners | Flexible Investment | 9 |
Perpetual Income & Growth | UK Equity Income | 10 |
Witan | Global | 11 |
Alliance Trust | Global | 12 |
European Assets | European Smaller Companies | 13 |
Bankers | Global | 14 |
Law Debenture Corporation | Global | 15 |
Merchants | UK Equity Income | 16 |
BlackRock Commodities Income | Sector Specialist: Commodities & Natural Resources | 17 |
BlackRock World Mining | Sector Specialist: Commodities & Natural Resources | 18 |
Henderson Far East Income | Asia Pacific - Excl. Japan | 19 |
F&C Global Smaller Companies | Global | 20 |
Source: AIC
Philip Milton, managing director of Philip J Milton & Company, said: “Investors like yield and there is an attractive income from plenty of quality companies.”
Yet he said he has not invested in any of the three most-viewed investment trusts, adding: “I believe there are even better buys out there with discounts to net asset value as well, so I can satisfy my capital valuation requirements as well as income.
“However, I should be wary of putting too much overseas at present because the dollar is so dear and sterling so cheap, so you’re paying heavily for a special year’s performance perhaps which could easily retrace its steps.”
katherine.denham@ft.com
