Five trusts to play the key themes of 2021

TL;DR

Environmental and renewable energy investing will be a key theme in 2021, along with the recovery of assets and potential opportunities in the UK and Latin America.

Transcript

hello with me today i have thomas mcmahon senior investment trust analyst at kepler trust intelligence hello thomas thanks for joining me today good morning good to speak to you now there's lots to think about clearly going into 2021 um are there any themes that you believe will influence portfolio construction for the next year and how might inves... Read More

Key Insights

• 🤩 Environmental and renewable energy investing is expected to be a key trend in 2021, driven by government priorities and commitments to transitioning away from carbon.
• 🌎 The recovery and catch-up of assets that were impacted by the pandemic will present investment opportunities, with the UK and Latin America being potential areas of interest.
• 🌎 Trusts like the Trig Renewables Infrastructure Group, Jupiter Green, Smaller Companies Dividend, Smaller Companies Growth, BlackRock Frogmorton, and BlackRock Latin America can be considered for various investment themes.
• 👾 ESG investing and potential investment opportunities in renewable energy should not be dismissed, as governments are allocating substantial funds to this space. However, cynicism and investment strategy should be evaluated separately.
• 🔬 The UK, despite Brexit uncertainties, may offer attractive investment prospects as uncertainty subsides and advantages of investing in the country become evident.
• 🤨 Latin America, which struggled during the pandemic, could see investors raising allocations in 2021 as global economic recovery takes place.
• 🈹 Trusts like BlackRock Latin America, although currently trading at a discount, could experience narrowed discounts if the market rallies on a global recovery.

Questions & Answers

Q: How will ESG investing, specifically in environmental concerns, influence portfolio construction in 2021?

Environmental sustainability will continue to be a priority for governments, leading to investment opportunities in renewable energy and other industries focused on transitioning away from carbon. Investors can explore options like the Trig Renewables Infrastructure Group and Jupiter Green to participate in this trend.

Q: What are some potential areas to consider for investment regarding the recovery and catch-up of assets?

The UK, despite Brexit concerns, could see a rebound in investments due to reduced uncertainty. Trusts like the Smaller Companies Dividend, Smaller Companies Growth, and BlackRock Frogmorton could be interesting options. Latin America, which performed poorly during the pandemic, might also become attractive for investment in 2021, with the BlackRock Latin America trust being a potential choice.

Q: What are some investment trusts focused on renewable energy and green energy?

The Trig Renewables Infrastructure Group is a stable choice, although it is currently trading at a premium. Jupiter Green offers an opportunity for non-professional investors to access a trust that is undergoing a revamp of its strategy to target smaller mid cap names with growth potential.

Q: What is a growth-oriented UK option for investment?

BlackRock Frogmorton is a trust with a growth-based approach and has been the top-performing trust over five years. It has the unique feature of being able to short stocks as well. Investors looking for a growth-oriented UK exposure may find this trust appealing.

Summary & Key Takeaways

• The shift towards ESG investing, particularly in environmental concerns, will influence portfolio construction in 2021.

• The recovery and catch-up of assets that have been impacted by the pandemic is another theme to watch.

• The UK and Latin America could present investment opportunities, with the UK potentially benefitting from reduced uncertainty and Latin America rebounding after a poor performance during the pandemic.