Based on the number of deals placed by AJ Bell customers in the past month, Scottish Mortgage (SMT) was both the most bought and sold investment trust as investors weighed the popular growth fund's long-term potential against short-term headwinds in the form of red-hot inflation and rising interest rates.
Other top investment trust buys and sells by value included SDCL Energy Efficiency Income (SEIT), capital preservation trust Ruffer (RICA) and dividend growth-focused global trust Scottish American (SAIN).
SCOTTISH MORTGAGE - BATTLEGROUND STOCK
Shares in Baillie Gifford's flagship fund have fallen the best part of 40% year-to-date, though the FTSE 100 trust has recently rallied off of June's 670p one-year low to 833p.
As of 16 September, Scottish Mortgage represented 12.8% of AJ Bell customers' investment trust buys and 17.8% of the sells over the past month.
While some investors are skittish about the trust's near-term outlook, others evidently believe the sell-off in the US tech connoisseur, which owns stakes in the likes of Moderna (MRNA:NASDAQ), ASML (ASML:AMS) and Tesla (TSLA:NASDAQ), has gone too far.
HUNGER FOR INCOME
Hot on its heels in terms of top investment trust buys with 9.7% of deals placed was City of London (CTY), the UK equity income stalwart managed by Job Curtis.
Against a backdrop of surging inflation, investors have clearly been attracted to the income generating credentials of the trust, which has 56 years of rising dividends under its belt.
Murray International (MYI), the abrdn-managed global equity income trust targeting an above average dividend yield with long-term growth in dividends and capital ahead of inflation, was also in vogue as investors sought to shelter portfolios from the ravages of the so-called ‘cruellest tax’.
The UK wind farm investor continues to generate a strong net asset value performance and cash generation and boasts a healthy investment pipeline.
POPULAR FUNDS
In terms of open-ended funds, Terry Smith's Fundsmith Equity (B41YBW7) remains one the most popular investments among UK retail investors.
Not only was it the month's top fund based on the value of deals placed by AJ Bell customers, it was also the top sell by number of deals placed.
Though the long-run performance record is outstanding, in common with other global equity funds, Fundsmith Equity has faced a major headwind in the form of inflation and expectations for rising interest rates.
Elsewhere, VT AJ Bell Adventurous (BYW8VG2) proved a popular pick with AJ Bell customers, speaking for 12.9% of the top buys versus 6% of top sells.
And another growth-focused Billie Gifford portfolio, Baillie Gifford American (0606196), was among the most sold funds of the month.
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (James Crux) owns shares in AJ Bell.
