As Jackie Beard, director of closed-end fund research at Morningstar, explains: "While there is variety among the income targets of these funds, with the likes of Jupiter European Opportunities aiming for total return rather than a fixed income yield, all trusts have a demonstrable track record in delivering steady incremental dividend growth on which investors can rely."
Compared to the previous quarter, Personal Assets Trust and Scottish Oriental Smaller Companies Trust have both dropped out of the top ten, to be replaced by Temple Bar, which offers exposure to UK large caps, and Acorn Income, a trust investing in small caps.
In the new top-ten list, it is interesting to note that nine of the 10 most popular investment trusts have traded at a premium to their net asset value throughout the third quarter.
"This trend suggests these funds are popular and the managers’ skills are being actively sought by investors," Beard adds.
Of the top ten, she notes that "the majority of funds are run by well-known and well-respected fund managers who have longevity of tenure, both at these funds and in their respective markets generally."
