Fund of the week: a simple way into utilities
Competition from private-equity groups is hindering the few investment trusts that specialise in the utilities sector. But Bernard Lambilliotte's Ecofin fund is still performing well.
Competition from private-equity groups is cramping the style of the few investment trusts that specialise in the utilities sector, says Bernard Lambilliotte, chief executive of fund management group Ecofin, quoted in the FT. "Their presence is altering valuations."
But despite that hindrance, the performance of his utilities fund has been extremely strong. The Ecofin Water & Power Opportunities (EW&PO) closed-end investment trust, which invests in water, electric power and gas-distribution companies across Europe and the Americas, managed a 66.5% return in the past year, according to Standard & Poor's. This compares to a 36.55% return over the same period by the utilities sector benchmark. At present, Lambilliotte thinks that Germany and Spain are the best-value markets in Europe, but the fund is also eyeing up Russia and Latin America. The types of firms targeted vary by region; electricity investments account for around 51% of the portfolio, but in the UK, water is seen as the most attractive.
Start your trial of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
EW&PO top ten holdings
Name of holding % of assets
