| Asset Group | Asset Sub-Group | Investment Category |
| Alternatives | Specialist | Adventurous |
Why we recommend itThe 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. Opinion
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 criteriaMorningstar 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. | ||
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