RENEWABLES FUNDS BOOMING

Booming in an inconsistent market. This is no bubble. Demand for the product the stocks back is huge.

Renewable energy funds are booming; Many outperform the S&P 500, promoters cite investor interest in the face of global warming
Steve Hargreaves, June 15, 2007 (CNN Money)

WHO
Mutual funds and Exchange traded funds specializing in renewable energy; Jeff Siegel, managing editor, Green Chip Stocks; Graham Huber, project manager, Opinion Research; William Buechler, founder/president, Barclay Partners Asset Management;

WHAT
Mutual funds specializing in renewable energy are, in many cases, doing much better than the S&P 500.
New Alternatives Fund, 6-20-2007 (click to enlarge)

WHEN
2004 money to renewables worldwide: $28 billion, 2006: $71 billion.
Profits over the last 12 months and in 2007.
Calver announcement June 13.

WHERE
World investment markets.

WHY
- Opinion Research Corp. poll shows ¾ of investors are concerned about global warming, only 1/5 had financial advisors discuss alternative energy and 4/5 want more alternative energy mutual funds. Calvert Alternative Energy Fund (150 European, US, Chinese and Japanese companies, 80% pure plays, 20% market leaders) is being promoted in response.
- Once investors sacrificed profits to go “green” but right now going green means gains:
- S&P 500: up 21% in last 12 months , 5% this year
Mutual funds--
New Alternatives Fund: up 37% in last 12 months, 20% this year
Guinness Atkinson Alternative Energy Fund. Up 17% in last 12 months, 27% this year
Guinness Atkinson Alternative Energy Fund, 6-20-2007 (click to enlarge)

Exchange traded funds (bought/sold like stocks)--
PowerShares WilderHill Clean Energy fund: launched last year, up 11% this year
PowerShares WilderHill Progressive Energyfund: launched last year, up 11% this year
Also, Market Vectors Global Alternative Energy fund, First Trust NASDAQ Clean Edge US Liquid fund, Calvert Alternative Energy fund.
- Not all cutting edge investments succeed.

QUOTES
- Siegel: "I don't think [alternative energy funds] exceed expectations, but I don't think they disappoint either…"
- Huber: "This is a big disconnect…There is strong U.S. investor interest."
- Buechler: "Lots of these companies never make it, and it's tough to pick out the ones that survive…It always seems to me that there are a number of companies they purchase that I just don't think are that good…I think it's better for the individual investor to put the time in, do the homework, and select their own companies."