A new investment trust to profit from the space race

There is now an investment trust focusing on the space sector. It looks intriguing, says David Stevenson – but highly risky.

Motorway junction
Britain’s Altitude Angel has produced a system to manage traffic with drones
(Image credit: © iStockphotos)

I recently highlighted the launch of a new exchange-traded fund (ETF) in the space sector: the Procure Space UCITS ETF (LSE: YODA). Now comes news of another new fund in the same area, an actively managed investment trust called the Seraphim Space Investment Trust (LSE: SSIT). It is set for an initial public offering (IPO) worth £180m. The closing date for applications is Friday 9 July, with dealing commencing on Wednesday 14 July. The fund is targeting a net-asset-value (NAV) total return of at least 20% a year.

As I noted in the previous article (moneyweek.com/investments/stocks-and-shares/share-tips/603343/investing-in-space-a-fund-for-the-final-frontier), the space market is already huge and growing fast. It is not merely a question of launching rockets – satellites for broadband, for instance, are a key subsector too.

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David C. Stevenson
Contributor

David Stevenson has been writing the Financial Times Adventurous Investor column for nearly 15 years and is also a regular columnist for Citywire. He writes his own widely read Adventurous Investor SubStack newsletter at davidstevenson.substack.com

David has also had a successful career as a media entrepreneur setting up the big European fintech news and event outfit www.altfi.com as well as www.etfstream.com in the asset management space. 

Before that, he was a founding partner in the Rocket Science Group, a successful corporate comms business. 

David has also written a number of books on investing, funds, ETFs, and stock picking and is currently a non-executive director on a number of stockmarket-listed funds including Gresham House Energy Storage and the Aurora Investment Trust. 

In what remains of his spare time he is a presiding justice on the Southampton magistrates bench.