Union Investment launches guaranteed product for renewables

Germany’s Union Investment has launched a guaranteed fund aiming to benefit from renewable energy investments, re-stating Union’s leadership in guaranteed funds in its home market.

The latest is one of 90 guaranteed products, holding €16.4bn, that Union has produced since 2001.

Union has a 49% market share in such products, according to Germany’s fund industry association.

The UniGarant Plus: Erneuerbare Energien (2018) fund has a subscription period from now until 9 December.

“Renewable energy such as wind, solar und water power are a global growth market,” said fund manager Tobias Windmeier (pictured).

“In 2010 over $200bn was invested globally in renewable energy – an increase of more than 30% on 2009”, he said.

Union said the fund was suited to investors who wanted to participate in the opportunities of renewable energy, but also wanted to reduce their risk in doing so, via the guarantee. An investment horizon of seven years or more was recommended.

The fund begins after the subscription period, on 14 December, and runs to 21 September 2018.

Withdrawing earlier makes void the guarantee Union offers with the fund, and entails a fee of 2%, payable to the fund.

The fund guarantees a minimum value of investors’ interests of €104. The fund invests in a list of international equity securities of businesses active in renewable energy.

Examples include providers of wind, solar, water and geothermal energy as well as biofuels and ethanol, and the plants and distribution of these power sources.

DZ PRIVATBANK SA, Luxemburg, is the Depotbank.

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