Nearly a quarter of investment trusts saw their share price reach a record high this month, according to figures from the Association of Investment Companies.
The data, compiled by Winterflood Investment Trusts, found 71 trusts had hit a record share price, with those in the global sector being given the biggest boost after the value of sterling plummeted.
Three quarters of those trusts with overseas exposure saw their share price reach new heights.
This comes amid the FTSE 100 index surging to record levels, with many mega cap firms benefiting from having most of their earnings overseas.
More cautious investors might consider drip feeding their investments on a monthly basis Annabel Brodie-SmithAnnabel Brodie-Smith, communications director at the AIC, said: “January has seen a 12-day run of record breaking highs for the FTSE 100 and it’s positive that a fifth of the investment company sector achieved share price highs.
“Of course there’s no telling where markets might go next, and more cautious investors may consider drip feeding their investments on a monthly basis, to smooth out some of the stock market highs and lows.”
However, she pointed out that over the long-term, lump sum investments have tended to outperform regular investments, but with more ups and downs along the way.
In the global equity income sector, all but one of the seven companies achieved a share price high this month.
While nine of the 20 trusts in the private equity sector hit a share price high.
The data used covers the past 25 years up to 18 January 2017.
Dan Farrow, director of SBN Wealth Management, said: “It would be interesting to see how the investment trusts have performed against equivalent benchmarks and comparative mutual funds.
"Another interesting metric would be to look at what would be the performance if the trust didn’t use any leverage, as this is a distinct advantage that investment trusts have over mutual funds."
But Mr Farrow said he still advises clients to stick to open-ended funds because they are buying the net asset value, rather than what he described as an "undisclosed future view of performance".
