by Jennifer Hill, from interactive investor, 25th March 2025:
Markets move in cycles. At any point in time certain areas fly high while others are in the doldrums
It is no surprise, then, that infrastructure and renewables funds are among the most popular tactical plays today..
There are plenty of opportunities around. We asked eight experts for their fund picks this ISA season – those to hold tactically for the short term and those to buy and hold for the long term.
Short term: NextEnergy Solar
Long term: Temple Bar
Another renewable energy sector pick, this time from James Carthew, head of investment companies at QuotedData, comes in the form of NextEnergy Solar. It has a dividend yield of 12% and is trading on a -30.9% discount to NAV.
Catalysts for the shares to recover and discount to narrow include M&A activity, plans to sell parts of the portfolio, share buybacks and hope of a resolution to cost disclosure issues that “have been plaguing the [investment trust] sector”, he says.
For the longer term, he likes the value-driven approach of Temple Bar, the best-performing UK equity income trust over the past five years.
“Corporates and private equity firms are snapping up businesses at premiums to prevailing share prices,” says Carthew. “The value recovery has much longer to run.”
Temple Bar has a dividend yield of 3.7% and can be bought on a modest discount of -3.7%.
Read more here