SJB | Korschenbroich, 06.09.2023.
Globale Aktien dehnten ihre Kursrally im Juli weiter aus, da starke Unternehmensergebnisse und erste Hinweise auf eine nachlassende Inflation für positive Impulse sorgten. Im Berichtsmonat war der Sektor Energieeffizienz der beste im FondsPortfolio, wo sich die Aktien von Unternehmen wie OnSemi, Infineon and Applied Materials besonders stark zeigten. In diesem freundlichen Marktumfeld generierte der Pictet – Global Environmental Opportunities P EUR (WKN A1C3LN, ISIN LU0503631805) eine Wertentwicklung von +0,82 Prozent auf Monatsbasis und notiert seit Jahresbeginn mit +12,09 Prozent im Plus. Der aktuelle Monatsbericht von Pictet-FondsManager Luciano Diana analysiert für alle Investoren der FondsStrategie SJB Nachhaltig die Veränderungen im Portfolio und liefert einen Ausblick für die Aktienmärkte des Environmental-Sektors.
Market Review
Equities extended their rally in July, bringing this year’s gains to 18%, as a strong run of earnings results from corporate heavyweights and data showing moderation of inflation encouraged investors to temper their pessimistic outlook on the global economy. The US was the best-performing developed equity market, with the Dow Jones blue chip index clocking 13 straight daily gains for the first time since 1987, thanks to strong second-quarter earnings results. Energy shares were in the lead in July, with oil prices registering their steepest monthly gains since January 2022, supported by signs of tightening global supply and rising demand towards year-end. Technology and communication services remain the best-performing sectors this year as they attracted the most inflows from investors year-to-date. This year’s rally in the S&P 500 index has been led by just a handful of companies, making it a narrowest leadership since the 1980s. The so-called “Magnificent Seven” stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – are up 68% so far this year, compared with the rest of the S&P Index, which has gained just 6%.
Performance Analysis
The strategy underperformed the MSCI ACWI during July. Energy Efficiency was the strongest segment, with a particularly positive contribution from semiconductor stocks such as OnSemi, Infineon and Applied Materials on strong underlying industry demand and robust earnings. Building efficiency stocks also performed well, led by Carrier, which raised 2023 guidance on strong H1 results and resilient HVAC demand. Pollution Control contributed positively in July, supported by outperformance at WSP and Tetra Tech on a solid demand backdrop. Danaher and Thermo Fisher also rallied as investor concerns eased in relation to the long-term pharma funding environment, despite short-term headwinds. Waste Management & Recycling performed well overall due to a strong rebound in packaging stocks Smurfit Kappa and Westrock, partially offset by Waste Management, which unperformed on reduced guidance related to lower commodity prices. Renewable Energy detracted from performance in July as Orsted derated on news of delayed or cancelled offshore wind auctions, while SolarEdge detracted on investor concerns of soft demand trends, particularly in the US residential market. Dematerialized Economy also detracted in the month, as software providers Synopsys and Ansys performed well but Hexagon derated as investors reacted negatively to a short-seller report.
Portfolio-Aktivity – Under- and Overweightings
During the month, we added to our exposure in Waste Management & Recycling and Renewable Energy, and reduced exposure in Dematerialized Economy. Within Waste Management & Recycling, we added to our positions in Republic Services and Waste Management due to continued robust underlying demand and strong price/cost execution. In Renewable Energy, we initiated a new position in Terna, a regulated electricity transmission utility in Italy that is key to the country’s decarbonisation and energy independence, primarily via its plans for integrating renewable energy capacity and increasing interconnections with neighbouring countries. In Dematerialized Economy, we reduced our position in Hexagon and within Energy Efficiency, we took some profits on Tokyo Electron and Applied Materials following strong performance, while we continued to build our position in Carrier.
Market Outlook
Energy Efficiency and Dematerialized Economy, two of our largest portfolio segments, continue to show strong fundamentals for the rest of the year. Demand for energy-saving technologies remains robust, and our companies are starting to benefit from the positive impact of the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) in the US. These represent a multi-year investment cycle for semiconductor and battery plants, electricity grid modernization, renewable energy capacity, green buildings and EV infrastructure, which adds growth and revenue visibility to our companies. As a consequence of this, the end-market demand for environmental services within the Pollution Control segment also remains very healthy, particularly in the US. Within Dematerialized Economy, demand for simulation software, Electronic Design Automation and Product Life-Cycle Management solutions is accelerating. In general, most of our portfolio holdings have sufficient pricing power and balance sheet strength to navigate well in the current environment. Supply chain constraints are easing and this should provide a tailwind for margins in the coming months.
Portfolio Strategy
Our strategy focuses on investing in environmental solutions providers. Exposureto environmental trends offers investors attractive risk-adjusted returns, regardless of the stage of the economic cycle. We favour solutions providers withwide economic moats, robust profitability, healthy balance sheets and businessmodels that don’t rely on government subsidies. Our bottom-up investmentprocess results in a concentrated global portfolio with a growth and quality bias.Long term, the trends of population growth and rising living standards areinescapable and so is the growing strain on natural resources. Awareness ofenvironmental issues has grown tremendously in the last few years and is now deep-seated, top of mind for an entire generation of citizens, consumers andinvestors.
Pictet – Global Environmental Opportunities Management Team
Luciano Diana
Gabriel Micheli
Yi Du
