Investment Universe, Process, Strategy and Benchmark – How does the Fund Manager invest? (ISIN: LU0363641811)Roberto Cominotto: "Dwindling resources of easily accessible oil, rising importance of natural gas in the energy mix and the impact of fossil fuels on the environment are leading to fundamental transitions in the energy markets. As a result, exceptional investment opportunities are opening up all along the energy value chain.
The investment universe of the JB Energy Transition Fund covers eleven growth themes along the entire energy value chain and both in traditional as well as alternative energy markets. This way the fund offers investors the opportunity to invest in companies that we consider the main beneficiaries of the energy transitions.
Each of the eleven growth themes (LNG, power grids, oil and gas resources, solar, wind, oil and gas technology, clean coal, efficient mobility, efficient buildings, hydro power, geothermal) is weighted at 0-20%.
The fund has no benchmark."
Performance Review 2008
Roberto Cominotto: “The fund was launched on 31 October 2008, in the middle of the financial crisis. We started with a relatively conservative allocation as most industries were still in a phase of issuing profit warnings.”
Performance Review 2009
Roberto Cominotto: “We started to gradually position the fund more aggressively between February and July 2009 as we became more confident that the financial crisis was past its peak and that equity valuations would offer attractive investment opportunities going forward. During the same period we also significantly increased our exposure to the Chinese solar industry as demand started to show first signs of improvement and Chinese authorities began to introduce solar subsidies for the first time.
As a result, we achieved a very strong performance for the year, significantly outperforming the New Energy peer group.”
Performance Review 2010
Roberto Cominotto: “The fund gained 6.7% in 2010, underperforming overall equity markets as measured by the MSCI World Index but significantly outperforming the New Energy Funds peer group. The exploration of the Deep Water Horizon oil platform in the Gulf of Mexico triggered a sharp but only temporary correction for oil and gas technology companies in the third quarter. For the year as a whole, the investment themes oil and gas technology, LNG and efficient buildings contributed positively to the performance of the portfolio while solar and wind companies were among the weakest performers.”
Performance Review 2011
Roberto Cominotto: “The fund fell 19.6% in 2011, in line with the New Energy Funds Peer Group but underperforming the overall equity market as measured by the MSCI World Index. The poor performance was mainly driven by a sharp correction in the third quarter when fears of a global recession and extreme investor risk aversion led to a massive selloff of cyclical growth stocks. LNG and hydro power companies were the only bright spots in the portfolio while solar and power grid companies had the biggest negative contribution. Since the middle of 2011 the fund performance has also decoupled from the oil price which used to be relatively closely correlated to the fund performance.”
Performance 2012 - Year-to-Date
Roberto Cominotto: “The fund is off to a good start in 2012, outperforming the overall equity market as well as our peer group average. It benefited from higher oil prices, more encouraging economic data and some return of investor appetite for cyclical growth stocks. Most positive performance contributors were companies related to oil, LNG, power grids and efficient building technologies. Wind companies continue to lag and remain a small portion of our portfolio.”
Performance since 2008
Roberto Cominotto: “Over the period since October 31 2008, the fund significantly outperformed the New Energy Fund peer group but underperformed the overall equity market as measured by the MSCI World Index. Especially in third quarter 2011 the fund was hit by extreme investor risk aversion. Investors dumped cyclical growth stocks even when earnings momentum continued to accelerate in areas such as oil and gas technology, LNG or power grid equipment. The gap which has opened in that period between the fund performance and the oil price has still not closed as of today.”