CB Fonder launches insitutional shares for Save Earth Fund
Swedish boutique CB Fonder has launched an institutional share class for its Save Earth Fund, an environmental fund with a global investment mandate.
The new share class requires a minimum investment of €500,000, and applies a 0.5% management fee and 20% performance fee – based on outperforming the MSCI World Net index.
The fund offers daily liquidity for both subscriptions and redemptions.
Save Earth is a fund focused on three trends: renewable energy, cleantech and water management. The mandate allows allocation freely between the three areas as well as geographically. CB points to examples of why it believes these areas represent faster growth rates and hence returns to investors, including air pollution in China, outdated water infrastructure in the US, and “huge needs for water cleaning in the wake of the shale gas boom.”
However, the fund is also run on a conservative basis. The volatility risk is closer to a broader index such as the MSCI World rather than peers such as Pictet Water, Parvest Global Environment, Handelsbanken New Energy, Nordea Climate and Environment, DNB Renewable Energy, BlackRock New Energy or Swedbank Robur Tomorrow Equity, CB said.
The managers can also ramp up their cash holdings, and during the financial crisis maintained a cash ratio of 30%-70%. This is one reason the fund has been able to return of 8.1% in euro terms since inception on mid-2008, despite renewables stocks such as Denmark’s Vestas, the wind turbine maker, losing significant market capitalisation value.
Since 2012, the aggregate performance of renewable energy, cleantech and water management has started to outperform the MSCI World, partly because those firms that have survived the financial crisis and subsequent global recession have started to “earn real money”.