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UK utilities don't have an exciting reputation among investors but in China it's a different story, says James Smith, manager of Premier Energy & Water (PEW) investment trust.
This small fund invests in utilities across the world for the income they offer (its ordinary shares currently yield 4.8%) and capital (its portfolio has grown 50% in three years).
In this video interview, Smith explains that utilities are attractive because they offer a blend of regulated businesses, whose returns are predictable, and unregulated businesses, where there is more risk but greater potential for growth.
A fifth of the investment trust's assets are invested in China where a government drive to reduce coal consumption and clean up the environment is boosting companies involved in renewable energy, gas distribution and waste treatment.
Premier Energy & Water is a split capital investment trust with two share classes: