08 May 2009, Financial Times

Green shoots spotted among the rubbish

Article by Alice Ross

"Evironmental investment trusts, which include waste management stocks, are getting the thumbs up from analysts, writes Alice Ross.

Analysts at Oriel Securities say investors should take advantage of short-term negative sentiment to buy both Jupiter Green Invest-
ment Trust and Impax Environmental, arguing that the fall in the oil price is priced into the shares. "We see scope for a rerating of the global green universe as the market takes account of the swathes of new green legislation to be introduced over the next few years," they say in a recent note.

Another option is investing through a venture capital trust. Venture capital managers say that they are well placed to fill the funding gap for smaller waste companies left by banks that are still unwilling to lend.

"We've seen no drop in appetite for our investment," says Steve Read at Climate Change Capital. "Many developers we work with can't raise as much bank finance as they were able to, so have been taking bigger investments from VCT people."

The Ventus VCTs, run by CCC, invest in areas such as landfill gas projects and waste wood biomass generators. They target returns of 15 per cent and aim to pay shareholders an 8p annual dividend. Other VCTs focusing on the sector include those from Foresight and Oxford Capital Partners."

For more information on CCC's Funds please contact the communications team

For information on the Ventus Funds click here

For the full article click here

 

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