Find bargains in green energy and private equity with investment trusts

A professional investor tells us where he’d put his money. This week: Richard Parfect, fund manager at Momentum Global Investment Management.

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(Image credit: Getty Images)

Investment trusts have had a torrid time over the past year, with share prices moving from premiums to net asset value (NAV) to wide discounts. The derating has stemmed from rising bond yields and increased competition from asset classes such as public debt, which until the advent of monetary tightening offered meagre returns.

Moreover, misleading guidelines from the Financial Conduct Authority, the City regulator, on reporting layered fees has created a buyers’ strike by traditional institutions. As a result, the investment-trust sector now offers compelling value and attractive income streams covered by sustainable and growing earnings.

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Richard Parfect, fund manager at Momentum Global Investment Management