Fund Performance Report Q1 2022

EcologyFunds.com

(Q1 2022 Performance Review)

Taking a closer look at the performances of the ecology, clean energy, water and green bonds sectors.

Ecology Managed Fund and ETF performances and fund information is published on:
http://www.EcologyFunds.com

ECOLOGY, Clean Water and Clean Energy Managed Funds

SUMMARY

Shares in most specialist ESG-focused companies traded down in Q1 2022. Rising interest rates have tested the appetite for ESG funds which remain heavily weighted in the technology sector.

ECOLOGY LEADER Q1 2022

Ecology Managed Funds returned an average of -8.7% in Q1 of 2022.

Strong performances in the run up to COP26 in November 2021 moved onto retracement in Q1 2022 as rising interest rates and global conflict weighed on sector sentiment. BlackRock’s Larry Fink suggests European energy supply concerns will now accelerate the energy transition.

The top-performing Ecology fund of Q1 2022 was the KBI Global Sustainable Infra A EUR managed by Central Bank of Ireland. The fund returned +5.1%. The investment objective of the Fund is to outperform the Index and to achieve long-term growth, consisting of capital and income return, by investing in a portfolio of equity and equity related securities of listed companies operating in infrastructure related sectors. The fund’s top 3 holding are National Grid PLC, Greencoat Renewables and E.ON SE.

CLEAN WATER LEADER Q1 2022

Clean Water Managed Funds returned an average of -10.2% in Q1 of 2022.

According to the UN “Water is at the core of sustainable development and is critical for socio-economic development, healthy ecosystems and for human survival itself.” The underperformance of Clean Water investment portfolios showed signs of reversing at the end of Q1 2022.

The top-performing Clean Water fund of Q1 2022 was the Hornet Infrastructure - Water Fund (EUR). The fund is managed by Dennis Sherrer and returned -2.7%. The investment aim of the Hornet Infrastructure - Water Fund is to achieve long-term capital appreciation with lower volatility compared to equity markets. One of its top holdings is Severn Trent PLC. The company provides clean water and waste water services and develops renewable energy solutions through its businesses based in the UK.

CLEAN ENERGY LEADER Q1 2022

Clean Energy Managed Funds returned an average of -2.7% in Q1 of 2022.

The Clean Energy sector focuses on companies that are involved in the production and distribution of solar, wind, hydroelectric or geothermal energy. After a very strong year in 2021, sector underperformance in Q1 of 2022 is expected to be temporary. Geopolitical events are accelerating energy transition requirements which is expected to be reflected in future sector performance.

The top-performing Clean Energy Fund of Q1 2022 was the Luxembourg Select FD - Active Solar C, which delivered a return of +5.5%. The fund is managed by Arnaud Chambaud and Pascal Rochat. The investment objective of the fund is long-term capital appreciation through investing at least two thirds of the assets in shares of companies whose primary activity is associated with the solar industry. The fund’s top holdings are JinkoSolar Holding Co Ltd DR and First Solar Inc. JinkoSolar Holding Company Limited produces silicon wafers, solar cells and solar modules while First Solar, Inc. uses a thin film semiconductor technology to manufacture electricity-producing solar modules.

GREEN BONDS Managed Funds

Global sustainable bond issuance is expected to surpass $1.5 trillion USD in 2022. The EU and US are expected to be leaders in the green bond markets. In October of 2021, the EU commenced a five-year €240 billion green bond program as part of its €800 billion Next Generation EU recovery process. The €12 billion green bond debut under this program was more than 11 times oversubscribed, making it the largest green bond ever issued and the largest single order book collected for the sector to date.

Source: www.ecologyfunds.com/