Investments  

Hargreaves Lansdown reveals its most bought trusts

Hargreaves Lansdown reveals its most bought trusts

Some of the largest investment trusts listed on the London Stock Exchange dominate the list of most bought trusts by Hargreaves Lansdown clients.

The company said the £6.7bn Scottish Mortgage investment trust, the £1.5bn City of London investment trust, the £3.2bn RIT investment trust, the £800m Woodford Patient Capital trust and the £2.1bn Witan Investment as the five most popular trusts with its clients.

Kate Marshall, an analyst at Hargreaves Lansdown said the City of London trust offers a “superior income”, while RIT offers “shelter from uncertainty” in markets.

RIT is a multi-asset fund that places capital in equities, bonds, and alternative assets. It is chaired by Lord Rothschild. Witan is a global trust that places capital in other funds.

James Pigot, who runs Pigots Investments in Dorking, said the Scottish Mortgage investment trust is one “you can’t be without.”

Ms Marshall said: “ Companies able to become dominant in their industry, wherever they are in the world. The Scottish Mortgage trust currently invests in big technology names such as Amazon and Tesla, as well as Chinese internet companies Tencent and Alibaba.

"These companies have performed well in recent years and more recently some of them have experienced a setback. However, the managers think these companies have a competitive edge that will help them to go the distance."

The £800m Woodford Patient Capital is run by Neil Woodford, and invests primarily in early stage companies.

Mick Gilligan, a partner at wealth manager Killick and Co said investors should persevere with Mr Woodford as his contacts in the market mean the trust will find early stage investments that reward investors.

David.Thorpe@ft.com