Five investment trust picks for 2022

TL;DR

2022 financial market outlook points to inflation impact, ESG trust popularity, and defensive investment trust options.

Transcript

hello with me today i have thomas mcmahon investment trust research manager at kepler trust intelligence hi thomas hi lin it's been another incredible year for stocks both in terms of news flow and performance um what have been your highlights in the investment trust sector yeah it's been a very a very volatile year i think some of the more surpris... Read More

Key Insights

• 🛀 Emerging markets like India have shown exceptional performance despite initial setbacks during the pandemic.
• 🙈 Commercial property funds are seeing an under-the-radar recovery, with restored dividends and potential for further growth.
• ✋ High inflation and challenges from the pandemic may create difficulties for equities in 2022.
• 📼 Alternative real assets like infrastructure and renewable energy trusts could offer protection in an inflation environment.
• 👀 ESG-focused trusts continue to gain popularity, with investors looking for sustainable investment options.
• ✋ Defensive trusts like Ruffer Investment Company are positioned for sustained high inflation and cautious central bank policies.
• 🪡 Investors may need to diversify their portfolios and consider innovative trust options in response to expensive valuations.

Questions & Answers

Q: What were the highlights in the investment trust sector in 2022?

Thomas McMahon highlights the performance of emerging markets like India and the recovery in commercial property funds, along with the strong dividend performance in the UK income sector.

Q: What are the key factors influencing the financial markets in 2022?

McMahon points out the impact of prolonged high inflation and the need for investors to navigate through the challenges that arose during the pandemic, suggesting that 2022 may not be as good a year for equities as 2021.

Q: Which investment trusts could outperform in the next 12 months?

McMahon suggests trusts focused on alternative real assets like infrastructure and renewable energy, as well as commercial property funds that show potential for an idiosyncratic recovery play.

Q: Do you expect more ESG-focused trust launches in 2022?

McMahon believes the ESG theme is here to stay, with a focus on the energy transition. He mentions trusts like Jupiter Green and BlackRock Energy Resources and Income as potential interesting plays in the ESG space.

Summary & Key Takeaways

• Thomas McMahon discusses the highlights of the investment trust sector, focusing on emerging markets like India and under the radar recovery in commercial property funds.

• He shares insights into the outlook for financial markets in 2022, highlighting concerns about prolonged high inflation and potential challenges for equities.

• McMahon mentions trust options that could outperform in the next 12 months, focusing on alternative real assets, commercial property, and trusts in the commodity space.