Portfolio manager comments — Q2 2025
Fund performance was positive during the second quarter of the year, rising by nearly 9% in SEK.
The period was marked by high volatility, primarily driven by political developments. Despite this, the fund increased in value after a weaker start to the quarter. The increase was in line with the benchmark index*.
Discussions around unilateral US tariffs and major shifts in climate policy outcomes as part of the ongoing US budget negotiations caused dramatic swings in sector equities.
The fund managed the quarter’s volatility well. The US was the second-largest positive contributor after Europe, and outperformed the sector overall. China also contributed positively, while the strong market performance in Brazil created some headwinds relative to the benchmark.
At the sector level, wind power, energy efficiency, and solar energy were the strongest contributors. In contrast, energy storage and building-related energy efficiency performed weaker.
Among individual holdings, First Solar (solar panels) was the top contributor, followed by Nordex (wind turbines) and Nextracker (solar energy solutions). The French company Waga Energy, which produces biomethane from landfill gas, also performed strongly following a takeover bid from EQT.
On the negative side was Enphase, where the fund’s exposure was limited due to risk management considerations. Despite this, the position contributed positively to relative performance.
Other holdings that weighed on returns included HASI (energy efficiency financing), BYD—after a strong performance in Q1—and Bakkafrost.
At the time of writing, the US federal budget has yet to be finalized. However, the proposal passed in the Senate is promising, and a final decision would reduce uncertainty and enable future investment decisions.
The US is facing a dramatic power shortage in the coming years. Renewable energy is the fastest and most cost-effective solution—even in a scenario without subsidies. We view electrification as a very strong structural driver, with renewable energy, energy storage, biofuels and geothermal energy forming key parts of the solution, even in an environment where the current US administration is more focused on traditional energy sources.
* S&P Global Clean Energy Net TR