Fund in this article
Shares in this article
by Andreas Hohenadl, Euro am Sonntag
D.he climate change not only drives young people onto the streets, but also brings investors to the stock exchange. Given the variety of funds that deal with the topic, you have to ask more precisely what kind of strategy is behind it in each case. Maarten Bloemen manages Templeton Global Climate Change and explains his approach here.
uro on Sunday: Which companies qualify for your climate fund?
Maarten Bloemen: First of all, there are the obvious solution providers: companies that already generate more than 50 percent of their sales with green or sustainable products or services. They typically come from the renewable energies, energy efficiency, sustainable transport or water and waste management sectors.
Many of your competitors also rely on such titles.
That is why we are also looking for companies that are moving in the right direction and whose strategy is shaped by the clear will to reduce greenhouse gases. The energy transition is a transition phase that will keep us busy for decades. Finally, the third group includes companies that are resistant to higher levels of CO2-Prices are, for example, because they cause hardly any greenhouse gases or use few resources.
How important is the idea of value to you – in other words, a favorable valuation – when selecting stocks?
It is equally important to success. I want to put it this way: if you have two circles – one is climate-related analysis, the other is assessment – and you bring these circles together, the small intersection of them represents the 50 companies that we have in our portfolio.
The rotation towards value values is sure to please you, right?
Yes, of course it has a positive effect on the fund. But some segments that we would like to have in the fund from the point of view of climate analysis have gone very well and are no longer cheap – especially companies that focus on hydrogen.
Are you excluding this segment for valuation reasons?
No. For example, we hold shares in Air Liquide and Faurecia, which have a large business area related to hydrogen. We prefer to play some topics indirectly if this is accompanied by a more favorable rating.
The full interview with Co-Manager Craig Cameron can be found at http://bit.ly/TGCCFonds
Templeton Eq. Clim. Change: The portfolio was created by Realignment of a global Value fund three years ago. The focus on cheaply valued stocks remained; the new one is Climate analysis. convinced by broad mix of sectors and most recently good investment results.
Image Sources: Franklin Templeton, BlackAkaliko / Shutterstock.com