Top 10: what investment trusts did investors buy in November?

US equities resumed their leadership of world markets in November after a decisive election result lifted sentiment. The Dow Jones Industrial Average and S&P 500 both reached new record highs, while US smaller companies surged amid optimism about America’s domestic economy. Technology companies were generally buoyed by strong results announcements, although Nvidia disappointed with its outlook for revenues in the fourth quarter.

Positivity across US markets appeared to leave its mark on investment trust buyers in November, with JPMorgan American Investment Trust entering the top-10 for the first time. Falling interest rates helped to ensure that trusts focused on technology and income producing assets also stayed popular. Multi-manager trusts fared well too, with Alliance Trust, fresh from its merger with Witan Investment Trust, returning to the top-10 as Alliance Witan.

Scottish Mortgage was November’s big winner, rising to the top of the best sellers list from fifth place in October. The trust has seen some significant changes over the past two months, including a sizeable reduction in its long-held position in Nvidia. The Argentine e-commerce giant Mercadolibre, Amazon and SpaceX are now the top-three holdings, with Nvidia, the Chinese food delivery, shopping and travel app operator Meituan and Tesla the next three.

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In October, the trust reported that its allocation to private companies had fallen to 23% – well below its 30% limit – following the flotation of Tempus AI. Scottish Mortgage currently trades at a discount of 10% to its asset value, down about 1% from a month ago and substantially below a peak of more than 20% in mid-2023¹.    

JP Morgan Global Growth & Income rose two places to second. This style-agnostic, “best ideas” portfolio has performed well versus its MSCI All Countries World Index benchmark ever since the pandemic and its popularity means that it currently trades at a 1.2% premium to its asset value. The trust’s prospective dividend yield was 4.0% as at the end of October². Please note, this yield is not guaranteed. Mega-cap technology names continue to dominate the trust’s top-10 holdings, alongside the French luxury goods maker LVMH, UnitedHealth and Johnson & Johnson.

JPMorgan American Investment Trust was November’s new entrant. This trust also targets a blend of growth and value stocks and trades at a small premium – about 0.7% – suggesting the market holds it in high regard.

As you might expect, current large holdings consist of a combination of mega-cap tech names and US companies with value credentials – for example, Kinder Morgan, an energy infrastructure company, and the insurance to hotels and oil pipelines conglomerate Loews.  The trust is currently underweight technology and overweight financials compared to its S&P 500 Index benchmark³.

Polar Capital Technology Trust swept from tenth to fourth place. During October, the trust’s managers noted that “technology giants continue to scale their AI infrastructure investments, suggesting confidence in its long-term potential as adoption maintains its growth”. In contrast to Scottish Mortgage, the trust’s weighting in Nvidia has increased recently – to 11.9% from 11.1% the month before.  The trust currently trades at a discount of around 11%⁴. 

City of London Investment Trust maintained a firm grip on the best sellers table in fifth, up one place from October. This trust is recognised for its conservative investment approach and for delivering 58 years of continuous dividend growth.

This 81 stock portfolio consists mainly of investments in large UK companies. HSBC overtook Unilever to become the top holding in October. Relx and the trust’s former largest holding BAE Systems are now in third and fourth. City of London currently trades at a 0.7% discount to its asset value, little changed from a month previously, and yields around 4.8%⁵. Please note this yield is not guaranteed.

October’s best seller, Fidelity European Trust, was in sixth place. This trust targets large European businesses with resilience and pricing power. The Wegovy weight loss drug producer Novo Nordisk, chip lithography specialist ASML and Nestlé are the current top three holdings. The trust is reasonably concentrated, with its top 10 holdings accounting for around 48% of a 45 stock portfolio. It currently trades at a discount of about 8.6%.

November proved to be another challenging month in share price terms for Greencoat UK Wind, the seventh best seller at Fidelity. Sentiment may have been dented by expectations of a less accommodative policy stance towards renewables in the US going forward (which shouldn’t have a direct impact on Greencoat UK Wind) as well as a slightly less benign outlook for interest rates and bond yields after the Budget.

That said, the trust now yields around 7.9% based on its current quarterly dividend of 2.5p and continues to aim to grow its dividend by at least as much as growth in the Retail Prices Index each year. Please note this yield is not guaranteed.

Alliance Witan, the trust formed through the merger of Alliance Trust and Witan Investment Trust, entered the best sellers list in seventh position. The trust’s combined £5.1 billion portfolio means it has become a contender to enter the FTSE 100 Index.

Drawing on a multi-manager, “best ideas” approach, Alliance Witan looks very different from its global benchmark with, for example, the US insurance broker Aon and British beverages group Diageo among its top 10 holdings. The trust is well diversified with 236 holdings – understandably more than the pre-merger Alliance Trust – and currently trades at a discount of about 5.1%⁶.

F&C Investment Trust was in ninth for the third month running. Like Alliance Witan, this trust draws on a multi-manager approach for its global investment portfolio, which now extends to more than 400 companies. Wide diversification is aimed at combating the effects of volatile market conditions.

Nvidia, Microsoft and Alphabet are the three largest holdings currently but their weightings are relatively modest. The largest, Nvidia, accounts for 4.0% of the portfolio, while Microsoft in second place accounts for just 2.7%. The trust has consistently grown its dividend for 53 years and aims to increase its dividend faster than inflation over the long term⁷.

Fidelity China Special Situations, the second best selling trust in October, rounded out the table in November. China’s stock markets were hampered by a lack of further, concrete stimulus measures over the month as well an increase in uncertainty about international trade following the US election. As a result, shares continued to trade sideways in the wake of their big September gains.

Fidelity China Special Situations, which is focused on the beneficiaries of longer term changes in China’s economy, broadly followed this trend. The trust currently trades at a 14% discount to its asset value compared with 13% a month ago.

Dropping out of the top 10 in November were Fidelity Special Values and RIT Capital Partners.

Top 10 best-selling investment trusts on Fidelity’s Personal Investing platform in November 2024

1. Scottish Mortgage Investment Trust
2. JPMorgan Global Growth and Income
3. JPMorgan American Investment Trust
4. Polar Capital Technology Trust
5. City of London Investment Trust
6. Fidelity European Trust
7. Greencoat UK Wind
8. Alliance Witan
9. F&C Investment Trust
10. Fidelity China Special Situations

Source: Fidelity Brokerage, 1-30 November 2024

Source: 

¹ Scottish Mortgage, 05.12.24
² JP Morgan, 05.12.24
³ JP Morgan, 05.12.24
⁴ Polar Capital, 05.12.24
⁵ Janus Henderson, 05.12.24
⁶ Alliance Witan, 05.12.24
⁷ F&C, 05.12.24

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Overseas investments will be affected by movements in currency exchange rates. There is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. When interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall. Investments in emerging markets can be more volatile than other more developed markets. The shares in these investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.