THE MONEY MAKING EXPERT

cells to wind and solar based solutions with a gradual end to fossil fuelbased energy supply’. He adds: ‘ This will have a wide- ranging i mpact on t he i ndustrial l andscape with new technologies supporting this transformation.’

One way to gain access to this climate driven megatrend is through thematic fund Ninety One Global Environment. McDermott says: ‘It invests only in companies helping to decarbonise the world economy.’ Top fund holdings include American environmental services company Waste Management and American electric utility company Nextera Energy.

AJ Bell’s Khalaf suggests fund Liontrust Sustainable Future Global Growth, run by Peter Michaelis, as a good pick for those wanting to get exposure to the sustainability theme. The fund has stakes in Alphabet and Visa – as well as Spanish mobile phone infrastructure specialist Cellnex.

Khalaf adds: ‘There are more specific sustainable themes that investors can target if they wish, but these come with higher investment risk because they tend to be focused on only one part of the overall environmental theme.’

For i n s t a n c e , Greencoat UK Wind is an investment trust that invests i n wi n d f a r ms a c r o s s the UK. Investors picking such s peci a l i s t i nvest ments s houl d make sure they represent only a s mal l p a r t o f a n o t h e r wi s e diversified portfolio.

THE REWARDS OF AN AGEING POPULATION

EVEN as the pandemic recedes, health anxiety will undoubtedly linger, as well as the need for investment in national health systems.

Of course, the rapidly ageing global population requires more healthcare, and since older people hold a large part of the world’s wealth, they will be willing to pay for solutions.

‘Healthcare was already an area in need of investment pre- pandemic and the spotlight shone on it last year has made it even more so,’ says Chelsea’s McDermott. ‘ In developed economies, ageing populations mean governments need to be able to treat more people for less money.’ James Douglas, fund manager of i nvestment trust Polar Capital Glob a l Hea l t h c a r e , believes there will be substantial growth i n areas such as telemedicine and healthcare technology for use in the home – for example, monitoring systems. He says: ‘The healthcare industry is looking to shift patient volumes to lower- cost and more convenient settings such as the home. In a post-Covid 19 world there is an expectation that healthcare systems globally will invest in analytics and technologies to drive cost efficiencies. That should allow for the greater provision of healthcare services without compromising the quality of care and outcomes.’ Fund picks to take advantage of this thematic trend range from iShares Ageing Population (a fund that invests in a basket of stocks that benefit from an ageing demographic) to Worldwide Healthcare Trust. Dzmitry Lipski, head of fund research at wealth manager Interactive Investor, is a fan of Worldwide Healthcare, which is managed by healthcare investment specialist OrbiMed Capital. He says: ‘It has generated a return of 108 per cent over the past five years and has outperformed its peer group.’

TRY MULTI-FUNDS FOR MEGATRENDS

SOME investment funds invest in a portfolio of stocks that embrace these megatrends.

They include Montanaro Better World, which invests in companies involved in themes such as healthcare, the green economy and innovative technology.

Also, M&G Global Listed Infrastructure which invests in econ o mic, social and ‘evolving’ infrastructure.

C h e l s e a ’s McDer mot t s a y s : ‘This means the fund can invest in everything from utilities and toll roads to renewable energy, health, education and civil buildi ngs – as well as mobile phone t owers, data centres, payment companies and royalties.’