Several green equity funds have seen considerable losses exceeding 10 percent, or corrections in finance lingo, this past month. Finansavisen reports, citing fresh data from Morningstar, that six in ten funds with the biggest losses this past month were 'green'.
Storebrand Renewable Energy fell 13.7 percent in the past 30 days and thereby tops the list of funds in the deepest decline, followed by Delphi Green Trends and Fondsfinans Fornybar Energi, which dropped by respective 10.4 and 10 percent.
"This is a correction after green equities performed phenomenally in not just the past year but for even longer than that. That a correction occurs now is not very surprising," says Storebrand Asset Management Chief Investment Officer Bård Bringedal to Finansavisen, adding:
"We now have to assess whether this is a bubble about to burst or a temporary correction. Of course, some of the equities tend to be overpriced, but the underlying driver in the longer term is quite strong for green companies contributing solutions. As a long-term investor, I wouldn't worry."
(This article was provided by our sister media, FinansWatch.no)
English Edit: Jonas Sahl Jørgensen