The Societe Generale Adequity new energy protected fund is worth considering, especially as investors’ capital is protected at the end of six years.
The WAEX index to which it is linked is compiled by the SAM group (Sustainable Asset Management) and calculated daily by Dow Jones indexes. It includes the world’s biggest alternative energy companies active in renewable energy, including solar used for domestic heating, wind for electricity generation, water for building hydro-electric power stations, biomass companies and energy-saving technology companies.
The Adequity WAEX strategy also implements a continuous risk monitoring process in order to reduce the risk of drawdown linked to volatility so that if a sharp rise in volatility occurs, the strategy will protect the funds performance by temporarily reducing its exposure to the index.
It aims to outperform the index by harnessing positive trends. In the three-year period to the start of this year, performance rose by over 48 per cent against the index performance of just over 42 per cent. This fund can be invested in through Isas, Sipps, offshore bonds or direct investments which are subject to capital gains tax only.
Two of the companies it invests in are FuelCell Energy, the world leader in the development, manufacture and marketing of high-temperature fuel cells, and Vestas Wind Systems, a Danish company which manufacturers cost-efficient, top-quality wind turbines. It has a global market share in this sector of over 28 per cent. This product should appeal to most growth investors.