Aim: Growth by investing globally in equities that benefit from trends in eco-energy, pollution control and clean water
Minimum investment: Lump sum £500, £1,000 for Isas, monthly £50, £200 for Isas
Investment split: 100% in global equities of companies benefiting from trends in eco-energy, pollution control and clean water
Isa link: Yes
Charges: Initial 4%, Isa 3%, annual 1.75%
Commission: Initial 3%, renewal 0.5%
Tel: 0800 848 494
This Oeic is a mirror of Allianz Global Investors’ Luxemburg-based Sicav of the same name. It aims for growth by investing in three environmental technology areas of alternative energy, pollution control and clean water.
Arcturus Investments director Dane Halling observes that the average number of holdings is 50-70. “For a higher than average risk space 50 holdings might be deemed relatively concentrated,” he says.
Halling likes the fact that this is a new fund yet there is a clear track record. “The Luxembourg mirror fund, also managed by Bozena Jankowska, head of Allianz Global Investors’ sustainability research team, has seen a 23.6 per cent return since inception in May 2006, against a MSCI World Index return of 10.9 per cent.”Halling points out that historic turnover has been in the 30 per cent range, which suggests a stable investment process with a multi-year stock holding period on average.
“We like the fact that there are three well identified themes that investors can see up front: alternative energy and efficiency; pollution control; water. Arguably, the latter theme might turn out to be the biggest of all,” says Halling.
He adds that Allianz Grassroots Research is a well-resourced research team across the whole Allianz group, which is an essential in this research-intensive area of investment.
Looking at the less attractive features of the fund Halling says: “It’s no longer an un-crowded space, as many fund management groups have launched products to take advantage of the undoubted huge potential in the green/eco field.”
He notes that the sector has been hot for several years, so there is scope for sector rotation away from some of the earlier stage companies that have appreciated strongly.
Scanning the market for possible competitors Haling says: “Jupiter is very strong and has been active in the green area for 15 years or so. There are a number of highly credible alternatives in the investment trust arena, one being Blackrock Merrill Lynch new energy tech, which has five-year annualised returns of 38 per cent.”
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average