With the global transition towards renewable energy well underway, there has been a proliferation of green energy investment funds in the UK aiming to capitalize on this megatrend. These funds provide exposure to clean energy companies and projects involved in solar, wind, hydro, geothermal and other renewable sources. For UK investors seeking to allocate capital in alignment with climate objectives, understanding the top renewable energy funds available can facilitate investment selection.
The VT Gravis Clean Energy Fund has delivered exceptional returns from investing in renewable energy
The VT Gravis Clean Energy Fund is one of the top performing renewable energy investment funds in the UK. This fund invests in a diversified portfolio of listed companies engaged in clean energy production and distribution globally. The fund has significantly outperformed broader equity markets, generating a return of over 90% since its inception in December 2017 versus around 20% for the MSCI AC World Index over the same period. The outstanding returns have been driven by successful stock selection and overweight allocations to solar and wind farm operators as well as electric vehicle manufacturers and charging networks.
Pictet Clean Energy provides focused exposure to renewable energy leaders across geographies
The Pictet Clean Energy fund is an actively managed renewable energy fund available to UK investors. The fund aims to invest in quality companies providing technologies, products and services that enable the transition to renewable energy sources. To construct a concentrated portfolio of 30-50 stocks, the fund takes a rigorous bottom-up approach assessing criteria like competitive dynamics, growth prospects and valuation. Regional and sector allocations are determined by a top-down view. Key holdings include global leaders in wind, solar, biofuels, hydrogen and smart grid technology spanning Europe, North America and Asia. The fund has built a strong track record, outperforming its benchmark index by over 3% annualized over 5 years.
Liontrust Sustainable Future Global Growth Fund provides diversified exposure to renewable energy
For UK investors seeking a diversified play on the renewable energy transition, the Liontrust Sustainable Future Global Growth Fund merits consideration. The fund aims to identify high quality companies providing solutions to sustainability challenges like climate change and resource scarcity. Within its environmental theme, the fund has significant exposure to renewable energy across wind, solar, geothermal, biofuels and hydro. Other climate related holdings include electric vehicle manufacturers, energy storage and HVAC efficiency companies. The fund implements a robust ESG integrated analysis framework alongside fundamental research. It has delivered solid risk-adjusted returns, outperforming global stock markets over 1, 3 and 5 year timeframes.
First Sentier Global Listed Infrastructure Fund provides exposure to renewable energy infrastructure
Infrastructure essential to renewable energy generation, transmission and distribution represents a compelling investment segment. The First Sentier Global Listed Infrastructure Fund provides exposure to this area in addition to other infrastructure sub-sectors. Within its renewables allocation, the fund owns stakes in clean energy developers, yield companies and equipment manufacturers. The fund aims to invest in high quality infrastructure companies with strong cash flows and dividend growth potential. By adopting a benchmark agnostic approach, the fund can maximize allocations to attractive renewable energy infrastructure. Since inception in 2007, the fund has generated attractive total returns with lower volatility compared to global equities.
Federated Hermes Impact Opportunities Equity Fund aligns renewable energy investing with positive impact
For values-based investors in the UK, the Federated Hermes Impact Opportunities Equity Fund merits a look. The fund invests in companies delivering positive social and environmental impact alongside financial returns, as aligned to UN SDGs like climate action and clean energy. Within that framework, the fund targets companies involved in renewable energy infrastructure, clean tech and energy efficiency. The experienced investment team conducts rigorous financial analysis on top of impact assessment. By allocating to renewable energy leaders committed to decarbonization, the fund aims to achieve competitive market returns with a real-world positive impact. Since launching in 2019, the fund has shown the viability of this approach, outperforming global equity markets while financing the renewable energy transition.
In summary, compelling renewable energy investment funds are available for UK investors seeking exposure to the accelerating low-carbon transition. Top options provide focused exposure to leading clean energy companies, projects and infrastructure across proven and emerging renewable sources. By allocating to the highest quality renewable energy funds, UK investors can aim to generate strong portfolio returns and make a meaningful impact on climate change.