Why invest in the RobecoSAM Smart Energy Fund?
The future of energy is electric. It is based on clean energy, which will decarbonize our economies. The RobecoSAM Smart Energy fund offers investors the opportunity to invest in the transformative change offered by renewable energy generation, smart grids, and energy efficiency. We see very strong structural growth drivers in the sectors we invest in, be it electrification of the transportation sector, energy efficiency of big data, or building hydrogen infrastructure.
How important is the investment in this clean energy fund to Robeco?
Sustainability is at the center of Robeco. We are constantly looking for ways to generate returns that benefit the world we live in. As one of our sustainable thematic equity strategies, the RobecoSAM Smart Energy fund is a very important example of this investment philosophy. Strong investor interest over the past 12 months has pushed the fund’s assets under management above € 2 billion, further consolidating the importance of the strategy for Robeco.
Do you think this fund can perform well in the current context of uncertainty?
The fund has performed very satisfactorily so far this year, outperforming broader indices such as MSCI World by more than 30% so far. We remain highly confident in the medium and long-term outlook for this product as fundamentals in the clean energy sectors are expected to remain strong. (More information can be found in the latest Management Team Report: https://www.robeco.com/docm/pmup-smart-energy-general.pdf).
At what levels of profitability do we move? If we opt for these clean energy-related investments, do we forgo higher profitability?
Most of the companies in the fund’s portfolio are very profitable. Our product has only a slightly higher PE index compared to broader indices like the MSCI World, but the projected average growth rates of our portfolio holdings are much higher, confirming our growth bias.
Will the return you get will be less than a traditional investment in fossil fuels …? Or, on the contrary, it would be higher …
Compared to the traditional energy sector, this year we have again outperformed significantly. Global initiatives to reduce carbon emissions will continue to weigh on the traditional fossil fuel energy sector. However, the clean energy companies in our portfolio will continue to benefit from their strong ordering trends, gaining market share through their “cleaner” solutions. Therefore, while we can never exclude any short-term volatility, we remain very constructive about the medium and long-term outlook for this product.
What differences do you see between the results of this type of fund in the Spanish market and the Latin American markets?
Latam markets lag in IS and sustainability is not an attractive investment trend today yet (in Spain it is currently very attractive). However, there is a lot of interest in this fund due to the great track record and potential of the topic.