Schroders green fund waits on solar valuations to come down
Renewable energy stocks are likely to fall further in 2009, with solar stocks particularly vulnerable, although a sharp correction should offer a buying opportunity for long-term investors, a fund manager with Schroders said.
“This is the year that’s going to create great long-term buying opportunity for investors in the renewable sector,” Simon Webber, manager of the Schroder ISF Global Climate Change Equity fund, told Reuters in an interview.
“There’s going to be profit warnings in the best wind and solar companies and this is a good opportunity to begin holding on that weakness,” said Webber.
Globally, Schroders manages assets of $200 million in climate change-related companies.
Germany-based Munich Re, which reinsures risks including those arising from the use of genetic engineering and information technology, and unranium miner Energy Resources of Australia were among the fund’s top 10 holdings as of end December.
“I still believe that the market is underestimating much of the impact of global warming and therefore there are undiscounted investment opportunities around climate change,” said Webber.
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Tags: Schroders green fund, solar valuations
