Scottish Mortgage, BlackRock World Mining and Picton Property Income are some of the investment trusts that are capturing much more adviser research than their peers, FE Trustnet analysis shows. 
In a previous article, we looked at the Investment Association funds that attracted far more research on FE Analytics than their fellow sector members over the past year, finding that Fundsmith Equity, Vanguard LifeStrategy 60% Equity and Liontrust Special Situations were some of the most dominant members of their peer groups.
In this article, we turn our attention to the Association of Investment Companies universe, examining the level of FE Analytics research activity that went into the most popular trust in each peer group and compared with the average activity for that sector.
Performance of fund vs sector since launch
Source: FE Analytics, to end of Apr 2019
Topping the list is Picton Property Income. It accounted for 16.43 per cent of research on FE Analytics in the IT Unclassified sector; the average for this peer group is a research share of just 0.84 per cent.
The £477.9m trust is built around a broadly diversified portfolio of UK commercial property including offices, retail units and industrial buildings around the UK.
While investor sentiment towards property has suffered because of Brexit, the trust has little exposure to vulnerable parts of the market such as London offices, instead preferring more defensive areas like industrial units.
Picton Property Income has ongoing charges of 1.2 per cent, is trading on a small premium to net asset value (NAV) of 0.54 per cent and yields 3.39 per cent. It is 35.6 per cent geared.
In second place is a trust that will be very familiar to most investors: Scottish Mortgage. This is the most heavily researched trust on FE Analytics; it also accounts for 26.31 per cent of research into the IT Global sector, compared with an average of 4.76 per cent.
James Anderson is lead manager of the £7.6bn trust with Tom Slater as deputy. The managers have a growth style of investing, seeking out businesses with the potential to disrupt their own industries.
Noting the fact that the trust invests heavily in unlisted companies and is one of the more volatile members of the sector, analysts at FundCalibre said: “Scottish Mortgage may not be appropriate for lower risk investors.
Source: FE Analytics Market Intel Tool
“However, for those seeking exposure to higher growth prospects from around the world, this trust is a well-managed option that focuses on finding tomorrow’s winners.”
The trust has one of the strongest records in the IT Global sector, sitting in its top quartile over the three, five and 10 years to the end of April 2019. Over 10 years, it has made a total return of 637.45 per cent compared with 251.10 per cent from its average peer.
Scottish Mortgage has ongoing charges of 0.37 per cent, is trading on a 1.7 per cent premium and yields 0.6 per cent. It is 8 per cent geared, according to Association of Investment Companies figures.
BlackRock World Mining is next, after being responsible for 44.84 per cent of research on FE Analytics into the IT Commodities & Natural Resources sector. The average member of this 10-strong peer group would expect to receive a 10 per cent share.
The £637.4m trust, which is co-managed by Evy Hambro and Olivia Markham, has been in existence for more than 25 years and is one of the best known natural resources funds in the business.
Over the past 20 years, it has made a total return of around 730 per cent – although recent years have been tougher owing to the weakness in commodity prices.
Analysts at Kepler Trust Intelligence said: “The managers’ experience and breadth of resources, as well as active approach to delivering total returns from this specialist area, mean that BlackRock World Mining remains a pre-eminent vehicle for those looking for exposure to metals and mining.
Performance of fund vs sector over 20yrs
Source: FE Analytics, to end of Apr 2019
“Recent performance has been moderately disappointing, but not entirely unexpected in our view given the historic pattern of outperformance during positive periods for the sector.”
BlackRock World Mining has 0.93 per cent ongoing charges, is trading on an 11.9 per cent discount to NAV, yields 6.1 per cent and is 13 per cent geared.
Other notable trusts that are being researched much more heavily than their average peer include RIT Capital Partners (in the IT Flexible Investment sector), Finsbury Growth & Income (IT UK Equity Income) and Murray International (IT Global Equity Income).