It is always important to look under the bonnet before buying a fund or trust, particularly those housed in this sector. Kyle Caldwell explains why.
Renewable energy investment trusts have grown in number over the past couple of years, with many proving popular with retail investors.
Research earlier this month by interactive investor found that six of the 10 most-bought sustainable strategies year-to-date have been investment trusts that invest in some form of renewable energy.
Anthony Catachanas, chief executive officer and manager of VH Glob Sustainable Energy Opp Ord GSEO, which spreads its investments across various countries, says: “The energy transition is a global phenomenon, which does not take place in the same manner in all countries. It depends on the resources available in each country, the energy mix of each country and what each country’s specific transition path is.”
Over the past year, Victory Hill Global Sustainable Energy Opportunities Fund is up 2.7%. “In some countries it means investing in distributed solar (Brazil), in other markets it means depolluting the fuel’s value chain to address pressing public health issues (Mexico), in others it’s firming the grid with net-zero reliable power (UK), or with hybrid assets bringing additional renewable and storage for grid stabilisation (Australia).”
Energy Access
Opening-up energy access to cater for increasing demand and population growth