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Are renewable energies a worthwhile investment?

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Environment and sustainability are gaining more and more importance in today´s society. In this interview about his special fund, Clemens Klein reveals why solar stocks are interesting in particular.

Mr. Mag. Clemens Klein is a senior fonds manager at ERSTE-SPARINVEST in Vienna
Mr. Mag. Clemens Klein: senior fonds manager at ERSTE-SPARINVEST in Vienna

What investment strategy do you pursue with you sustainable/green fund?

ERSTE WWF STOCK UMWELT invests in themes like renewable energy, water, energy efficiency, mobility, and recycling and thus covers a wide range of mega-trends that in the long run show above-average growth rates.

What are the criteria according to which you select the companies for your portfolio?

An independent environmental advisory board sets the investment universe – only those companies are admitted that comply with the stringent criteria of WWF Austria. The focus is exclusively on the environmental benefits of the manufactured products or technologies provided as well as on impeccably ethical corporate governance. The stock selection per se is executed by the fund management team. In this process, we take into account quantitative and qualitative analyses and, in particular, the long-term potential of a company or a technology.

What asset classes, sectors, and investment regions do you currently prefer?

We can see particularly good opportunities in renewable energies, especially in solar energy. This is complemented by similar themes such as intelligent power transmission and distribution, and not the least the storage of energy, all of which come with interesting growth potential.

What are your three biggest positions in your fund?

Shimano, a globally leading manufacturer of bicycle components, is our largest position in the fund. Shimano is also a good example for our long-term investment strategy: this share has been continuously in our fund since 2003, and its price has increased more than tenfold. Other big positions are based in the strongly growing area of renewable energies, such as Canadian Solar, Trina Solar, and Vestas Wind Systems. And lastly, Wabtec, another heavyweight in the fund, is a leading company in the area of brake and safety systems for rail vehicles; the company benefits from the global expansion of the rail network and rising safety requirements in transportation.

What are your yield targets, or what is your benchmark?

In the short run of course the performance of the fund will largely depend on the development of the overall market. But in the long run the above-average growth potential of the invested themes should generate positive effects on the performance of ERSTE WWF STOCK UMWELT.

Further information about the fund: ERSTE WWF STOCK UMWELT

 

Advantages for the investor

  • Participation in global companies focusing on environmental technology.
  • Optimal diversification among companies from the environmental sector.
  • Opportunity to achieve substantial capital appreciation.
  • Support by ESPA for the WWF’s water protection programm.
  • Well suited as an addition to an existing equity portfolio and for long-term capital appreciation.
  • Investment funds are separate assets.

Risks to be considered

  • The net asset value of the fund can fluctuate considerably (high volatility).
  • Due to investments denominated in foreign currencies, the net asset value of the fund in euros can be negatively impacted by currency fluctuations.
  • The investor bears the risk of the environmental sectors emphasised in the portfolio (alternative energies, recycling, etc.) and the issuer risk of the participating companies.

 

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Legal disclaimer

This document is an advertisement. All data is sourced from ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H., Erste Asset Management GmbH and ERSTE Immobilien Kapitalanlagegesellschaft m.b.H. unless indicated otherwise. Our languages of communication are German and English.

The prospectus for UCITS (including any amendments) is published in Amtsblatt zur Wiener Zeitung in accordance with the provisions of the InvFG 2011 in the currently amended version. The simplified prospectus is prepared by ERSTE Immobilien Kapitalanlagegesellschaft m.b.H. and published in Amtsblatt zur Wiener Zeitung in accordance with the provisions of the ImmoInvFG 2003 as amended. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H., Erste Asset Management GmbH and for ERSTE Immobilien Kapitalanlagegesellschaft m.b.H. pursuant to the provisions of the AIFMG in connection with the InvFG 2011.

The fund prospectus, Information for Investors pursuant to § 21 AIFMG, the simplified prospectus, and the key investor document/KID can be viewed in their latest versions at the web site www.erste-am.com or www.ersteimmobilien.at or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus or simplified prospectus, the languages in which the key investor document/KID is available, and any additional locations where the documents can be obtained can be viewed on the web site www.erste-am.com or www.ersteimmobilien.at.

This document serves as additional information for our investors and is based on the knowledge of the staff responsible for preparing it at the time of preparation. Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.

Paul Severin

Paul Severin has worked at Erste Asset Management since April 2008. Until 2012 he was responsible for the company’s product management; he has directed communications and PR activities since April 2012. From 1992 to 2008, he was director of equity fund management and deputy director for institu...

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