Bericht des Fondsmanagements (Stand: 30.09.2019)
The sector underperformed the MSCI World in September. Overall equities rose slightly, but the various subsectors and general market tilts was very opposite from last month with rising global yields and valuation oriented strategies performing better. This turned out favourably for the portfolio. The portfolio outperformed the sector and equities generally substantially in Septmeber. Names that was weakest over the summer typically recovered most in September. This year s worst stock, Renewable Energy Group, was the top performer following talk about positive biofuels regulation in the US. Margins have recovered somewhat, and we are also encouraged to see increasingly more cities, states and countries adopt Low Carbon Fuel Standard programs, this month exemplified by initiatives from Colorado. We initiated in two names this month, battery separator supplier W‐Scope and Benchmark which is an efficiency supplier to the aquaculture industry. We have not been so active in the battery sectors as we prefer to play it indirectly. However, we think W‐Scope is well positioned towards the high growth European EV market, the industry has high entry barriers and is critical to for EV safety. Benchmark brings together innovative products in genetics, animal health and advanced nutrition which improves the efficiency and sustainability of the aquaculture industry through improved yield, quality and disease prevention. This further improve the carbon footprint of the aquaculture industry which already is the animal protein source with the lowest carbon footprint. The long‐term drive towards a less emission intensive economy is very much in place and should be positive for the fund. Short‐term the economic cycle is uncertain, and this also hits the portfolio near term earnings outlook. Still, we are convinced that the portfolio offers substantial growth between cycles. We find the overall valuation to be attractive relative to what we consider normalized earnings and are hence long‐term constructive on the outlook.