The Ludgate Environmental Fund, located in Jersey, but managed in the capital, saw a rise in stocks by 3.3 per cent in March from its launch in 2007, proving that waste management and recycling are the key to weathering the recession, according to an article from Reuters.
Eclipsing the MSCI World equity, the global benchmark, which during the period lost 20 per cent, the environmental fund has shown that being eco-friendly can be lucrative. Nigel Meir, founder of the Ludgate Environmental Fund, said that the firm came out even during the three year period, remaining stable as everyone else waned.
The fund will last eight years and is managing 46 million pounds in total assets. To date 30 million has been invested among 11 different companies. The fund retains a net value of 100.5 pence for one share as of 31 March, which is a drop from its 104 pence per share in 2009, but a boost from its original opening at 97.3 pence.
Meir said that the fund has opted to focus on the waste management end of renewable energy, but that the market there had proven to be lucrative in their return. He added that using waste to produce renewable energy is more economical than expensive renewable energy projects, that often need government incentives for backing.
Although some governments have launched stimulus plans to help cap expenses for low carbon equipment, the sector’s recovery has remained nearly stagnate. Subsidy cuts across Germany and Spain, where solar markets were once booming, have hit the industry hard.
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