Performance Environnement International - International stocks
The environment without frontiers
Trust trend since its initiation
Past performances should not be seen as a guide to future performances.
ISIN Code : FR0010378562
*On 2009/12/31, the l’ADDI for part A is EUR 0,3548733 euros and UER 10,8378298 for part F.
Information to download
Simplified Prospectus : Performance Env.International
Monthly management report : July 2010
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Background
Today, uncontrolled world economic growth together with a demographic explosion has produced an unprecedented consumption of fossil fuels.
The resulting emissions of carbon dioxide, a greenhouse gas, have been mainly responsible for major climate change, in particular rising global temperatures.
These developments threaten our supplies of resources (water, energy, etc.) as well as our future quality of life.
According to the Stern report (by Sir Nicholas Stern, former Chief Economist of the World Bank) published on 30 October 2006, the cost to the world economy could be between 5% and 20% of world GDP annually, equivalent to that of the two world wars and the depression of the 1930’s put together.
Even if some dispute the methods of calculation used by the report, no-one can now deny the overall extent of the phenomenon. In fact, it is now a known fact that no country will be spared by climate change or the consequences which must follow (material cost, climate refugees, epidemics, etc.).
The environmental issue therefore transcends borders.
Against this background, laws are changing and are becoming more restrictive in order to control pollution, to prevent climate change, to protect nature, to deal with problems related to the environment and health, to preserve natural resources and manage waste. The ultimate objective is to change our way of life from that of “unlimited economic growt” to one of “rationing”.
In view of these developments it is vital to understand the transformations in the markets linked to the environment (water treatment, waste treatment and renewable energy) as well as the legal changes which stem from them.
For more information on the environment click on this link: Related Articles
Objectives
- Maximum protection of the capital invested
- To obtain a yield greater than that of the international stock markets over the medium to long term by benefiting from the growth of environment related stocks.
Management strategy
Investment in 3 priority sectors:
- Water treatment
- Waste treatment
- Renewable energy
In order to select the stocks which enter the portfolio our management team will systematically:
- Analyse the legal framework by geographical zone (international diversification)
- Identify which environmental sub-sectors are benefiting from the regulatory changes
- Establish a map of companies benefiting from the regulations in collaboration with the authorities which benchmark the field
- Research and validate investments (relevance of strategy, financial perspectives, management, quality of industrial tools, etc) through systematic meetings with management teams (numerous overseas trips)
- Select the stocks
Risk management
In order to limit foreign currency risks, Performance Environment International is hedged against the risk of fluctuations.
The fund was created on 10 November 2006. In the long run the fund will be made up of around a hundred stocks, with the largest positions not taking up more than 5% of the holding.
The geographical spread will be: 35% United States, 35% Europe, 30% Asia.
Portfolio Composition
Main holdings:
- Canada : 5N+ (raw material for sin solar panels)
- Europe : SADI (waste management, Italy)
- Asia : Trinasolar (solar)
Advantages and disadvantages
Advantage: The purpose of this fund is to capitalise on the experience acquired on a European level with Performance Environnement so as to tap into the potential linked to developments in regulations on an international level.
Disadvantage: The fund presents a more aggressive management style, owing to its presence in more volatile geographical areas and high share exposure (around 90%).