Bringing you live news and features since 2006 

Research reveals that renewable energy assets are key to portfolio diversification


A survey of 100 UK pension funds, institutional investors, and wealth managers from Downing LLP (Downing) reveals almost all say they will increase allocations to renewable energy as part of a diversification strategy.

Downing offers both institutional and retail investors the opportunity to invest in renewable energy and other infrastructure in the UK and northern Europe.

Ninety-two per cent of UK professional investors surveyed, who collectively manage around GBP118 billion in assets under management, are looking to diversify their portfolios using renewable energy assets over the next 18 months.

When asked which three areas of renewable energy will be most likely to achieve successful diversification, three-quarters (76 per cent) say solar; 74 per cent say hydro; 64 per cent choose biomass; 59 per cent pick wind and 27 per cent select tidal and wave. 

When asked how they expected they would allocate to renewable energy assets over the next 18 months, four-fifths say they will invest in more renewable energy projects in Europe and North America; three-quarters (76 per cent) say they will invest across more of the UK; 55 per cent say they will invest in more renewable energy projects in Asia; and 44 per cent will invest across other parts of the world.

Henrik Dahlstrom, Investment Director at Downing Renewables & Infrastructure Trust, says:  
“It makes sense that investors see renewable energy as a reliable diversifier. UK pension funds recognise the value these assets have to portfolios, and we have already seen a trend to increasing allocations, which looks set to continue over the next year and a half.”

Latest News

Some big forces moved further into ETF issuance this week, with Capital Group launching 12 new active/passive model portfolios, and..
ASYMmetric ETFs has announced the launch of two new funds, ASYMmetric Smart Income ETF (NYSE: MORE) and ASYMmetric Smart Alpha..
First Trust Advisors has announced the launch of a new actively managed ETF, the First Trust Multi-Strategy Alternative ETF (NYSE..
Allianz Investment Management LLC (AllianzIM), a wholly-owned subsidiary of Allianz Life Insurance Company of North America has announced the launch..

Related Articles

We are very pleased to open the voting for service providers (selected by nominations) and ETP issuers, selected by our data partners, Trackinsight, for the European ETF Express Awards, in...
Osprey Funds’ founder and CEO, Greg King, has written an open letter to Barry Silbert, majority owner of Digital Currency Group which owns Grayscale, suggesting that he uses his powers...
Comparing multifactor ETFs to the popular Marvel Avengers series may seem a bit of a stretch but recent analysis from Morningstar suggests the investment strategies have more in common with...
Canadian asset manager Mackenzie Investments, with CAD186.6 billion under management, has published its annual Mackenzie Investments Year-End ETF Report. ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by