2010-12-02

November came out as the second strongest month in 2010 for Save Earth Fund, which rose by +3.9%. The fund's best exposure during the month was smart materials (+9.1%) - a segment we increased the fund's exposure to in October - followed by the fund’s exposure to the water sector (+5.6%). The worst performer was the so-called smart grid segment (-6.2%). World index rose during the month by +4.5% while the weakness in the renewable energy index continued (+1.1%).

In November, intensified speculation about consolidation in the sector of renewable energy arose due to continuing price declines amongst most of the leading players. Larger US and European conglomerates and Asian companies are the ones believed to be most interested in acquiring exposure to the sector. European solar and wind companies are seen to be the most probable acquisition targets. The speculations about acquisitions took another step forward after ABB, in the last day of the month, announced a bid for the American company Baldor, active in the fields of electric motors and power transmission, totalling $3.1 billion. Baldor has the second largest weighting in the index for renewable energy.

At the end of the month the climate negotiations in Cancun, Mexico, took its start. There are no expectations that a new climate treaty, that will replace the Kyoto Protocol that expires in 2012, will come together in Cancun. The purpose of the meeting is to continue negotiations where they were concluded in Copenhagen a year ago, and to put a framework in place that can be decided on in Durban, South Africa, next year.

Read the montly report

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