Fund of the week: A steady, green, profit machine

This fund looks for companies providing the solutions to environmental issues. It hasn't changed its strategy in 22 years. And with a 54% return in five years, it isn't about to do so.

It used to be cool to be on the climate change bandwagon. These days, it's the sceptics who are in fashion. But Charlie Thomas, manager of the Jupiter Ecology Fund, isn't fretting. His fund, which looks for companies providing the solutions to environmental issues, hasn't changed its strategy in 22 years. And up 54% in five years against a 36.9% return for the FTSE World, it isn't about to do so.

Two core environmental themes are the ones to watch right now, says Thomas: China and waste recycling. Thanks to increasing regulatory requirements that involve alternative energy (such as wind power), there are a lot of opportunities emerging in China. Late last year, for example, Thomas bought into China Long Yuan's initial public offering. It's the fifth largest renewable energy company in the world. And if it maintains its current growth trajectory, it should be the second largest within a few years, he says.

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