A green investment trust to buy

Environmental technology is still a long-term green investment opportunity, even though the ESG bubble has burst

Wind farm on top of mountain
(Image credit: Eric Yang)

Three years ago, the idea that a fund focused on environmental markets and resource efficiency would be regarded as “contrarian” would have been ridiculous. Yet such has been the backlash against the “net zero”, “climate change” and “environmental, social and governance (ESG)” agenda that any fund that puts kowtowing to the environmental establishment above the pursuit of profit has been hammered. 

Renewable energy funds have sunk from trading at large premiums to net asset value (NAV) to a weighted average sector discount of 22%. Funds focused on “sustainability” have underperformed and ESG has gone from being the focus of every investment presentation to becoming a token page at the back. Investors have returned to concentrating on companies that focus on maximising profits rather than saving the planet. Hence firms involved in the exploration and production of hydrocarbons are back in demand, as are the aerospace and defence sectors.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.