Top 14 recommended investment trusts

Fourteen investment trusts gained at least three high ratings from among these five sources (see table below). We feel this consensus of opinion represents value to investors.

The top rated investment trust is Jupiter European Opportunities Trust (JEO), which gained a record five top ratings. Jupiter European Opportunities is also a member of the IC Top 100 Funds.

JEO invests in securities of European companies and in sectors or geographical areas that are considered by the investment manager to offer good prospects for capital growth, taking into account economic trends and business development. The trust's portfolio manager Alexander Darwall favours companies with attributes including:

• a strong management record and team;

• a sustainable competitive advantage; and

• structural changes that are likely to benefit prospects.

The trust has an ongoing charge of 1.06 per cent and a yield of 0.79 per cent. It was trading at 440.75p, a discount of -0.25 per cent on its underlying net asset value. This is slightly cheaper than its 12-month average premium of 0.92 per cent, according to Morningstar data at at 22 September 2014.

Ben Yearsley, the head of investment research at Charles Stanley Direct, says: "Mr Darwall has a highly disciplined approach and knows exactly what he wants in a company. He will only invest in businesses that are leaders in their respective fields and have excellent management. He seeks to understand them inside out, trading infrequently and holding positions for many years once he has found what he is looking for."

Morningstar's latest note on JEO says: "We think Jupiter European Opportunities is a compelling choice for European equities. Since the fund's launch in 2000, it has returned more than 13 per cent annualized (to 31 March 2014), some 8 percentage points more than its average Morningstar Europe Flex-Cap Equity Category peer. Not only that, the manager has achieved consistent outperformance in every year bar one, and that one was 2008 when gearing exacerbated the market falls."

The second most highly rated was Aberdeen Asian Income Fund (AAIF), with four top ratings.

AAIF, which is also a member of the IC Top 100 Funds, aims to provide investors with a total return primarily through investing in Asian Pacific securities, including those with an above-average yield. It does not expect to have significant Japanese exposure.

The portfolio is constructed without reference to the composition of any stock market index or benchmark. It is likely, therefore, that there will be periods when its performance will be quite unlike that of any index or benchmark and there can be no assurance that such divergence will be wholly or even primarily to the company's advantage. The company and manager measure its performance against the MSCI AC Asia Pacific ex Japan Index (in sterling terms).

The AAIF has an ongoing charge of 1.24 per cent and a yield of 3.87 per cent. It is trading at 204p, at a discount of 0.38 per cent on its underlying net asset value. This is slightly cheaper than its 12 month average premium of 1.10 per cent, according to Morningstar data as at 22 September 2014.

Charles Stanley Direct's Mr Yearsley says: "Aberdeen has one of the premier teams investing in Asian equities. Despite underperformance against their peers in recent months, they have generated strong long-term returns adopting a disciplined strategy of investing in strong and stable companies for the long term. We continue to have conviction in this process."

Morningstar says: "The fund is run by a seasoned and stable management team, of whom we have a high opinion. This team is led by Hugh Young, who cofounded Aberdeen's Singapore office in 1992 with former colleague Peter Hames. Mr Hames retired from the firm in 2010 but this hasn't had a negative impact. Indeed, many team members have spent more than 10 years at the firm, which brings stability and depth of understanding to its process.

"All said, we think it's a strong proposition for investors looking for Asian equity, with prospects for growth of both capital and income."

A further 12 investment trusts gained 3 top ratings. Among these, nine are also members of the IC's Top 100 Funds: Aberdeen Asian Smaller Companies Investment Trust (AAS), Baillie Gifford Japan Trust (BGFD), Blackrock Frontiers Investment Trust (BRFI), BlackRock World Mining Trust (BRWM), Edinburgh Dragon Trust (EFM), Finsbury Growth & Income Trust (FGT), Law Debenture Corporation (LWDB), Murray International Trust (MYI), Standard Life UK Smaller Companies Trust (SLS). The consensus of opinion around these trusts should be reassuring to investors who have already invested in them. Other investors might want to put these trusts on their watchlists.

The three funds that gained three top ratings that have not yet made it into the IC's Top 100 Funds are:

Genesis Emerging Markets Fund (GSS) aims to achieve long-term capital growth, primarily through investment in equity markets of developing countries. The fund's managers invest with a five-year time horizon and the trust has a total expense ratio of 1.7 per cent. As at the end of August, half of its portfolio was invested in Asia, with 23 per cent in the Middle East and Africa, 14 per cent in Latin America and 11 per cent in Europe and Central Asia.

Keystone Investment Trust (KIT) aims to provide shareholders with long-term growth of capital, mainly from UK investments. It is managed by Mark Barnett of Invesco Perpetual who also manages Perpetual Income and Growth Trust (PLI), an IC Top 100 Fund. KIT has a yield of 2.88 per cent and is trading at a discount of 5.19 per cent, compared to its 12-month average discount of 2.02 per cent as at 22 September 2014.

Standard Life Equity Income Trust (SLET) is a UK equity income investment trust that has the ability to ability to gear and to consider smaller-cap ideas. It was tipped as a 'buy' by Investors Chronicle at 421.5p on 28 May 2014. On 22 September it was trading at 398.75p, a 2.36 per cent discount to its underlying net asset value.

MOST RECOMMENDED INVESTMENT TRUSTS

Source: Investors Chronicle research using platform and ratings service websites in September 2014.