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[ TRUST PICKS ]
28 / 29
Anthony Luzio asks
three analysts for their
investment trust picks for
the year ahead
Stocking
fillers
F
ollowing the strong
rebound in equity
markets this year, it
is understandable
that investors are coveting
more risk in their portfolios.
However, when Trustnet
Magazine asked three analysts
for their investment trust picks
for the year ahead, they mainly
preferred to focus on one key
theme that they believe will
continue to make headlines
over the long term.
TRUSTNET
Rebecca O’Keeffe,
interactive investor
Rebecca O’Keeffe, head of
investment at interactive
investor, notes there has been a
growing trend for vehicles that not
only target a sustainable return,
but also a sustainable future for the
planet. She believes this theme will
continue to grow in importance
as world leaders face up to the
challenge of preventing global
warming by cutting the dependence
on fossil fuels and technologies that
emit greenhouse gasses.
O’Keeffe says that anyone who
is interested in investing in this
manner may wish to look at
interactive investor’s ACE 30 list
of ESG (environmental, social and
governance) funds and trusts, which
share these environmental goals.
The list is split into three categories:
avoids, considers and embraces.
“Impax Environmental Markets is
an excellent example in the embrace
category,” she says. “Its objective is to
enable investors to benefit from growth
in markets for cleaner or more efficient
delivery of basic services of energy,
water and waste. The trust’s holdings
are predominantly listed in the US and
Europe, covering sectors in which the
trust’s objectives are directly relevant.”
The trust was launched in 2002 and
while it initially struggled, O’Keeffe
notes its performance has gone
from strength to strength since 2016,
when investors began to take a closer
interest in ESG factors.
However, she sounds a note of
caution.
“While geographically diversified,
given it is focusing on specific areas
in relation to water, energy and
waste, it needs to be part of a more
diversified portfolio, and it is no
surprise in this context that the trust
has no gearing.”
trustnet.com