Space and hydrogen: trusts give savers entry into the new world

Investment trusts are century- old institutions known for being solid but staid. But a spate of new funds offer DIY savers the chance to own stocks involved in space, hydrogen and “digital infrastructure”.

It has been a record year for launches, according to the Association of Investment Companies, a trade body, with 13 to choose from that attracted £3.4bn in savings.

While more options give investors a chance to own modern stocks, knowing whether a fund is good can be difficult thanks to the lack of a track record.

New funds include Seraphim Space, which buys companies involved in space travel and communications. HydrogenOne Capital invests in hydrogen power while two digital infrastructure funds, Cordiant Digital Infrastructure and Digital 9 Infrastructure, buy and run physical assets such as data centres and cables.

Mick Gilligan of wealth manager Killik & Co invested in four new trusts: Cordiant Digital Infrastructure, Digital 9 Infrastructure, Pantheon Infrastructure and Seraphim Space. “We bought the two digital funds because they generate a lot of cash and are low risk, as customers of the stocks they own need them regardless of economic growth.

“They are also big and growing areas so there is a long pipeline of stocks to buy and make money from,” he added. Investec, a broker, said Cordiant Digital was a good choice as telecoms towers and fibre optic networks were the “plumbing of the internet”.

“These assets benefit from lengthy contracts with payments that rise with inflation. The investments will grow as the number of internet users does and increases data consumption, transfer speeds and the need for storage,” it said.

Rob Murphy of research firm Edison is a fan of Seraphim Space, which he said would profit from spending to tackle climate change. “The recognition that space technology and satellite technology play a crucial role in environmental innovation is reflected in the large amount of investment in the industry. With two new investments in Satellite Vu and HawkEye 360, the group is expanding,” he said.