SJB | Korschenbroich, 02.07.2021.
Im Mai 2021 entwickelten sich Umwelttechnologie-Aktien etwas schwächer als der breite Markt in Gestalt des MSCI World Index, wobei Titel aus dem Bereich der Erneuerbaren Energien der Haupt-Bremsklotz waren. Vereinzelt gerieten auch Solar- und Windenergie-Unternehmen unter Druck. In diesem Marktumfeld generierte der Pictet – Global Environmental Opportunities P EUR (WKN A1C3LN, ISIN LU0503631805) eine leicht negative Wertentwicklung von -0,27 Prozent auf Monatsbasis, liegt aber seit Jahresanfang mit +4,94 Prozent weiter klar im Plus. Der aktuelle Monatsbericht von Pictet-FondsManager Luciano Diana thematisiert für alle Investoren der FondsStrategie SJB Nachhaltig die Veränderungen im Portfolio sowie den Ausblick für die Aktienmärkte des Environmental-Sektors.
Market review
The sun shone on most asset classes during May. Riskier assets are being underpinned by central bank liquidity, not least from the Fed and a by and large event-free reopening of European and US economies. But fears that the central bank will end up being slow to respond to rising inflation is weighing on the greenback. Gold was the big winner in the month, lifted 7.7% by inflation concerns, leaving the precious metal up marginally on the year after previous slippage. Oil and other commodities also gained ground – and not just on the back of higher anticipated demand. Investors sought physical stores of value to hedge against the risk that the recent pickup in inflation is not as transitory as central bankers believe it to be. Equities gained further ground. There was a slight shift in focus away from the US to Europe and emerging markets beyond Asia, both of which are lagging the US in the post-Covid recovery cycle. Stocks in the single currency region gained by more than 2 per cent on the month in local currency terms while Swiss stocks were up by over 3 per cent. Commodity-related equity sectors did well, with energy stocks up by almost 5% and materials up some 3%. Energy is now the strongest sector year-to-date, up more than 24 per cent, though financials run it a close second, with a 22 per cent gain in 2021 so far.
Performance analysis
The strategy performed slightly below the world equity market over the month. Renewable energy was the main laggard. A solar tracker company in the portfolio posted disappointing results because of the higher commodity prices that impacted margins. A wind turbine manufacturer was hit by logistical issues and another solar name did not meet investors’ high expectations. The Dematerialized Economy segment was also down. Here, a simulation company name saw a deceleration in some parts of the business, which is probably temporary. A telemedicine company published results slightly below expectations and the stock is still suffering from its relatively more expensive/high growth status in the current market. One of our work-from-home solutions providers is being hit by very high comps during the first half of the year. Some names within Pollution Control also underperformed. The most positive contribution came from Energy efficiency, with a rebound of semiconductor names, and generally good performance from industrial companies related to Building Efficiency. In Sustainable Agriculture, the strategy benefited from its participation in the IPO of a vegan oat milk company, which is currently performing well.
Portfolio activity – overweightings & underweightings
During the month, we added mainly to Energy Efficiency and Waste Management & Recycling positions. We took some profits in semiconductor equipment companies as well as a wind turbine supplier within the Renewable Energy segment. We finished selling two residual positions – one in Pollution Control and one in Energy Efficiency. New stocks that entered the portfolio included a paper-based packaging company and the oat milk company that did its IPO.
Market outlook
The outlook for the environmental theme looks promising in 2021. The governments of Europe, China and now also the US – the world’s three major economic blocs – are finally all aligned on supporting technologies aimed at making their economies more efficient, less resource intensive and ultimately more sustainable. Even more importantly, corporates continue to invest in innovation and drive down the cost curves of many disruptive environmental technologies, despite the short-term Covid-related economic uncertainty. For example, the electrification and the digitization of entire sectors of the economy, such as transportation, manufacturing, buildings, construction etc., is poised to accelerate. This will benefit disruptive solution providers across the Renewable Energy, Energy Efficiency and Dematerialized Economy segments of our portfolio. In addition, companies that contribute to a cleaner environment are also likely to see robust demand, for example those in our Pollution Control segment. These companies reduce the negative health effects of pollution, help prevent future diseases and in general help rebalance the relationship between humans and nature.
Portfolio strategy
Our strategy remains firmly focused on investing in environmental solutions providers. We believe that exposure to environmental trends offers investors attractive risk-adjusted returns, regardless of the stage of the economic cycle. We favour solutions providers with wide economic moats, robust profitability, healthy balance sheets and business models that don’t rely on government subsidies. These companies are not only likely to weather a difficult economy, but also to perform well during the recovery phase. We favour exposure to defensive business models and avoid the more cyclical parts of the economy. Our bottom-up investment process results in a concentrated global portfolio with a growth and quality bias. Long-term, the trends of population growth and rising living standards are inescapable and so is the growing strain on natural resources. Awareness of environmental issues has grown tremendously in the last few years and is now deep-seated, top of mind for an entire generation of citizens, consumers and investors.
Pictet – Global Environmental Opportunities Management Team
Luciano Diana
Gabriel Micheli
Yi Du
