Turnaround: Green duo hurls global asset manager's thematic fund into 99th percentile in one year

One year back, Ulrik Fugmann and Edward Lees stripped BNP Paribas Asset Management's fund Energy Transition of its assets and implemented a new strategy, which turned the thematic fund into a top performer. Now, despite a growing divergence between profit and share price performance for several companies within the theme, the trend is only in its infancy and represents one of the biggest commercial opportunities of our lifetime, Fugmann tells AMWatch.

"The idea was for us to invest exclusively in a theme in which we have invested for the past 20 years. We are not only focusing on wind and solar companies, but we have a holistic view of the companies that are able to embrace and capitalize on the needed transition of the energy system,"says Ulrik Fugmann (left), senior portfolio manager at BNP Paribas Asset Management. Besides Fugmann stands Edward Lees, senior portfolio manager. Photo: PR / BNP Paribas AM

The past 12 months in equity markets have been like a roller coaster ride. The year started with record highs in the early 2020, diving to an unprecedented drawdown in mid-March, followed by a historic rally. The ride up now seems to have been replaced by a new slide downwards, amid fears of new lockdowns as the number of Covid-19 infections rises.

While some sectors such as conventional energy have not been able to recover from the first steep downturn, others like alternative energy have flourished.

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