Did you buy one of January’s most popular funds?

Which investment trusts are most popular right now? After an uncertain start to the year for many global stock markets – hardly surprising given the volatile political and economic landscape – hazarding a guess to that question isn’t easy. New data from investment platform Fidelity International, detailing the top-selling investment trusts with its investors in January, therefore makes fascinating reading.

In many ways, Fidelity’s data represents a microcosm of what is appealing about the investment trust universe, featuring a diverse array of funds. They range from out-and-out generalists to sector specialists, underlining the argument that investment trusts – facing some criticism in recent times – still have the potential to play an expansive role in portfolio strategy

At number one in Fidelity’s list of the top 10 investment trust sellers in January is International Public Partnerships, a broad-based fund that invests in infrastructure assets worldwide. It’s a classic play on volatile markets and challenging economic conditions, offering the prospect of relatively stable long-term returns linked to inflation. Its dividend policies appeal to income seekers, but there is also the potential for capital growth.

You might put City of London Investment Trust, another fund in Fidelity’s top 10, in a similar bracket. While it’s predominantly stock market invested, rather than exposed to illiquid assets, the fund’s unique selling point is its commitment to increasing its dividend each year.

With almost six decades of such rises behind it, the fund is one of the AIC’s leading Dividend Heroes, investment trusts that have all increased their dividends every year for at least 20 years. For defensively minded investors worried about rising inflation and in need of income, you can see the attraction.

Equally, investment trusts also appeal to more adventurous investors. AVI Global, F&C Investment Trust and JPMorgan Global Growth & Income all invest across international markets, providing investors with managed and diversified exposure to global equities. These are potential core holdings for investors focused on long-term growth and income – the kind of funds you can depend on as a bedrock for your portfolio.

Alternatively – or additionally – for those looking for more specialist stock market exposure, three trusts on Fidelity’s list stand out. Fidelity Special Values is largely UK invested, while JPMorgan American and Schroder Japan Trust focus on the markets that their names suggest. Each offers dedicated exposure to a specific leading global market.

Another interesting aspect of the data is the presence of two sustainability-focused investment trusts in the top 10, in Greencoat UK Wind and Octopus Renewables Infrastructure Trust.

While the investment trust sector has resisted the temptation to launch hundreds of sustainable funds – despite the environmental, social and governance (ESG) movement – it does offer clear advantages in areas of this field. The world needs to build vast amounts of renewable energy capacity, creating a clear investment opportunity, but assets such as wind farms and energy contracts are illiquid and long-term by their nature. The structure of an investment trust, with its fixed pool of capital and a liquid trading mechanism in its shares, is a good option for exposure to such assets.

The bottom line is that Fidelity’s list is a reminder of the versatility of investment trusts. Much of the public discussion about the sector in recent months has concerned the fact that so many trusts’ shares are currently trading at an unusually wide discount to the value of their underlying assets. You can argue that this is a systemic headwind for the sector, or that it is a moment of opportunity. But the wider point to take from Fidelity’s data is that investment trusts still have significant appeal to investors with a diverse range of ambitions, objectives and attitudes to risk.