AJ Bell Money & Markets Investment Trust Show: can big dividends make up for weak share price performance? The challenges facing renewable energy and infrastructure trusts.
Nov 3, 2025
In this insightful discussion, James Carthew, a research analyst specializing in renewables and infrastructure trusts, dives into the challenges facing these sectors, including how rising interest rates impact NAVs. David Bird, manager of Octopus Renewables Infrastructure Trust, shares details about their strategic pivot toward growth and construction projects aimed at improving shareholder outcomes. Pieter Staelens discusses CVC Income & Growth's credit-focused strategy, highlighting successful opportunistic purchases that generate steady income while managing risks.
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Concentration Puts Trust Status At Risk
- Manchester & London faces potential loss of investment-trust status because managers and associates hold 62% and have been buying shares.
- The board halted buybacks and raised the dividend to ~5% to shore up shareholder returns while considering a merger or restructure.
Concentration Trades Diversification For Conviction
- Concentrated trusts can outperform if the bets hit but magnify losses if they don't, as winners aren't diluted.
- Investment trust rules allow far greater single-stock concentration than open-ended funds, so board policy matters.
Limit Single-Trust Exposure
- Treat a highly concentrated trust as one part of a diversified portfolio to limit single-trust risk.
- Use other funds or assets to balance exposure rather than relying solely on one concentrated trust.