Citywire: The 2021 Trust Recovery Stories I’m Betting OnCommercial/ 08 January 2021
Last year will not be looked back on fondly by most people, but for many investors it ended up being a bumper 12 months. After the rebound from the pandemic, where are the remaining investment trust opportunities?
Last year will not be looked back on fondly by most people, but for many investors it ended up being a bumper 12 months. Those of us who had exposure to technology, biotech, gold, and Asia – China, Japan and Korea, in particular – will be patting ourselves on the back. By contrast, value investments struggled in 2020, even after November’s bounce, and many sectors were hit hard by lockdown restrictions. The first question for 2021, is: how quickly will Covid-hit businesses bounce back once vaccination programmes allow the resumption of ‘normal’ economic activity?
The Democrat win is also a shot in the arm for the renewable energy sector in the US. That is potentially good news for US Solar, SDCL Energy Efficiency Income and newcomer Ecofin US Renewables Infrastructure (RNEW). I wouldn’t be surprised if each of these managed to raise more money this year. In the UK too, the government’s pledge to build back greener may help UK-focused renewable funds and GCP Infrastructure which has a sizeable exposure to the renewables sector.