Last year was another excellent one for investment trusts. JPMorgan notes that 2020 saw the largest-ever outperformance of the FTSE All-Share by investment companies. And this century the FTSE Equity Investment Instruments index has generated a total return of 300.2% versus 131.7% from the FTSE All-Share.

This is a reminder that exchange-traded funds and unit trusts have their place. But if you are looking for real active fund management and the opportunity to invest in more specialised strategies, there is still nothing better than listed closed-end funds.

Sticking with competing geographies and markets, a new trend is US green growth, courtesy of the Biden administration’s focus on climate change. There are already two specialist funds in this sector: US Solar Fund and the recently listed Ecofin US Renewables Infrastructure Trust. A few existing infrastructure funds are also investing heavily in the US, with the SDCL Energy Efficiency Income Trust (LSE: SEIT) in particular worth watching. This energy-efficiency and storage sector is growing fast. Expect more share placings from SEIT, Gore Street Energy Storage Fund and Gresham House Energy Storage. As the US ramps up its wind turbines and solar panels, it will need to improve energy efficiency and spend a lot on batteries to store all the extra intermittent renewable power.

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