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Stocks from renewable energy companies are out of favour. The MSCI Global Alternative Energy Index has slumped around 42% this year. Not only renewables have sold off, ‘green stocks’ from companies active in EV charging stations, energy storage or heat pumps, for example, are also heavily underperforming the broader market. All have strong impact narratives, are a clear fit to the renewable resources transition theme and have good long-term prospects. The current mood around this theme, however, is very depressed. In this article, Portfolio Manager Global Equities Arjan Palthe explains recent market developments and why we do not share this negative investor sentiment.

With the exception of our holdings related to water solutions, all other holdings linked to the renewable resources theme have experienced serious losses. These are companies in the wind and solar industry like Nordex and Enphase Energy, but also companies generating and distributing renewable energy, such as Voltalia and Acciona Renovables. Irrespective of their strong impact narratives and their strong long-term prospects, the mood around renewable resources and especially renewable energy is negative.
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