There are lots of reasons for investors to be optimistic with good economic growth propelling markets forward while interest rate hikes and monetary policy tightening has been taken relatively well. 
While many admit that we are likely nearer the end of the cycle than the beginning, uncertainty remains as to when the market will turn.
For those that believe there are still a few years left to go in the current bull run and therefore want to remain risk-on, below Peel Hunt's Anthony Leatham (pictured) outlines three investment trusts that may be worth aggressive investors taking a closer look at.
Herald Investment Trust
The first choice of Leatham, the head of investment companies research at Peel Hunt, is small-cap technology, media and telecoms investment trust Herald IT.
Managed by Katie Potts and her team since 1994, the £1bn trust has returned 1,414 per cent since its inception versus a 664 per cent return for the Numis Smaller Companies plus AIM ex IT index.
Performance of trust vs benchmark since launch
Source: FE Analytics
Leatham said: “We believe that the combination of experience, extensive industry knowledge and a process centered on company meetings gives this team an informational edge in a poorly understood part of the market.
“At the smaller end of the TMT universe, the risks are greater but the disruptive innovation and growth potential is at its most interesting, along with the potential for increased M&A.”
He added that the portfolio is very stock specific but there are themes that be seen running through it, such as datacentres, big data, cloud computing, graphene, robotics, security and the internet of things.
Currently, the portfolio has a strong bias to the UK with 60 per cent invested in the country, although on a lookthrough basis the underlying earnings are more international.
Overall Herald IT has 25 per cent in software, 15 per cent in semiconductors and 13 per cent to computer services, with another 10 per cent in media companies.
The trust's shares are on a 13 per cent discount to net asset value (NAV), according to data from the Association of Investment Companies (AIC). It has ongoing charges of 1.08.
Jupiter Emerging & Frontier Income
The pair use a high conviction, unconstrained approach to invest in companies across both emerging and frontier market equities.
Leatham said: “Their mandate allows them to optimise total returns whilst harnessing the attractive and growing dividends from the region.”
Launched in 2017, the trust has returned 6.70 per cent since inception, beating both the IT Global Emerging Markets sector and MSCI Emerging Markets index, as the below chart shows.
Performance of trust vs benchmark since launch
Source: FE Analytics
Leatham added: “Teverson brings with him an impressive track record from his days at Standard Life and his current portfolio of 45 stocks offers a compelling combination of value, high return on equity, strong earnings growth, a generous yield premium over both emerging market and, more notably, over developed market benchmarks.
“When the world sneezes, emerging market sentiment catches a cold, and this most recent bout of market uncertainty is no exception but this trust offers differentiated exposure, attractive dividend income and robust discount control features in the form of an annual redemption facility.”
The portfolio is most weighted to Taiwan, Hong Kong and the UK, with financials, industrials and consumer services being the top three sector allocations.
Jupiter Emerging & Frontier Income is 12 per cent geared, has a yield of 5.6 per cent and ongoing charges of 0.75 per cent, according to the AIC. The trust's shares are on a 2.3 per cent premium to NAV.
VinaCapital Vietnam Opportunity
Last up is the five FE Crown-rated, £766m VinaCapital Vietnam Opportunity investment trust managed by Don Lam.
“The team’s edge is in its fundamental analysis, growth investment style and relationship-driven negotiated transactions across both listed and unlisted equities,” Leatham said.
NAV performance of trust vs benchmark since launch
Source: FE Analytics
“The approach has delivered 16 per cent annualised NAV return over the past five years with less volatility than the market and strong participation in the domestic consumption story.”
While the Vietnamese market is risky and volatile, the head of investment trust research said that it is also growing and, with foreign direct investment and privatisations gathering pace, this equity story is developing fast.
“In addition, VinaCapital Vietnam Opportunity's board has been active; reducing fees, operating a sizeable share buyback programme and, more recently, introducing a return of capital in the form of a dividend (2 per cent of NAV per year),” he said.
The trust trades on 22 per cent discount to NAV and faces a five-yearly discontinuation vote this December. It is not geared, has a 2.4 per cent yield and ongoing charges of 4.44 per cent, according to data from the AIC.