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Why we recommend it
The fund is managed by Thiemo Lang who moved from Robeco to Polar Capital in 2021 and was accompanied by three colleagues. Lang has more than two decades of relevant experience and is one of the most seasoned managers in the alternative energy category.
The investment process is similar to that which Lang operated for 14 years at his previous employer. It focuses on bottom-up selection of quality-growth companies that trade at reasonable valuations and provide solutions that enable the decarbonization and electrification of the global energy sector. A thematic framework is used to identify the investable universe, which is then narrowed to approximately 150 stocks based on identified technology changes, sustainability trends and a first valuation screening. Further fundamental analysis is performed on roughly 80 stocks, which is a very manageable number given the size of this team and allows in-depth research.
The portfolio’s top ten holdings will typically represent 40% of its assets, almost double the average for peers, and high conviction is also seen in the sector allocation. A large overweight versus the category and the S&P Global Clean Energy Index in the technology sector is a notable feature, with this being at the expense utilities. As a result of these biases, relative returns can be variable over the shorter term.
The fund benefits from a proven investment approach and a well-staffed and cohesive team led by one of the most seasoned investors in the alternative energy field. The manager, Thiemo Lang, achieved a very strong long-term track record with this strategy at his previous employer and we expect that to be repeated here.
ii ACE sustainable style: Embraces. This means the fund adopts a targeted or proactive approach to ethical investing, in an effort to make a positive impact and/or environmental outcomes.
Fund EcoMarket category: Sustainability Themed. This relates to funds that focus on sustainability related issues and opportunities as part of their investment strategy, often alongside ethical criteria. Their focus is often around longer term societal and environmental trends.
|Information and data compiled to October 2023.|
The information we provide in the ACE 40 investments list does not constitute a "personal recommendation". You should ensure that any investment decisions you make are suitable for your personal circumstances and that the ethical style of the investment reflects your personal beliefs.
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