Interactive Investor

ii ACE 40 investments:
Polar Capital Smart Energy Fund

ii Ace 40
Asset GroupAsset Sub-GroupInvestment Category

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 decarbonisation 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, sub-cluster attractiveness 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 other funds and the S&P Global Clean Energy Index is in the technology sector, 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.

Sustainability criteria

Morningstar Sustainable Attribute: This fund is considered a sustainable investment product based on its prospectus or other regulatory filings. As a Sustainability Themed Investment, the fund aims to make an impact alongside financial returns through investing in specific issue areas that stand to benefit from long-term trends. 

Information and data compiled to March 2024.

Risk warnings

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.

Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor.

Any changes to the ii ACE 40 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Review.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii ACE 40 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii ACE 40 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii ACE 40 investments list.