General Development

In October 2024, the fund price recorded a loss of 7.78%. Due to very positive company announcements from various portfolio companies, the fund price initially rose by over 10% at the beginning of October, only to give up these gains again during the month. Economic stimulus measures by the Chinese government also provided short-term support to the clean tech sector. However, the high volatility in the run-up to the US elections had a strong influence, preventing the fund from maintaining its gains and ultimately closing the month in the red. The election of Trump as US President will increase volatility in the clean tech sector in the short term. Please refer to our factsheet for complete performance details.

Fund Performance

October’s performance paints a clear picture
In October, 7 stocks in our portfolio delivered gains, while 22 stocks suffered losses. Good company news from the following companies had a positive impact: Wolfspeed, Daqo New Energy, Jinko Solar, and DynaCert. These companies come from all three main sectors.

Loss contributions, which overall predominated, came from the following companies: Hexagon Purus, Enphase Energy, Aumann, Ceres Power, ITM Power, Canadian Solar, Plug Power, and QuantumScape. Again, these come from all three main sectors.

Company Examples

Hexagon Purus

Hexagon Purus with setback in orders and capital increase
Several hydrogen companies such as Ceres Power, ITM Power, and PowerCell Sweden have provided positive impetus in recent months through strong sales development – we reported on this in our monthly commentaries. Hexagon Purus was also one of these encouraging stocks in the hydrogen sector. Particularly positive were agreements with Toyota in May, subsidies of CAD 8.5 million in July, and record sales with a growth rate of 60% in the same month. At the end of September, the share price received further support from an agreement with Mitsui, which set out the terms for convertible bonds. In October, however, Hexagon Purus had to cope with a setback when Daimler Truck North America terminated a supply agreement. Although the annual forecast was confirmed, the news led to a significant correction in the share price, making Hexagon Purus the weakest stock in the portfolio in October. A capital increase at the end of October intensified the short-term pressure on the stock. However, we continue to regard Hexagon Purus as a well-positioned specialist for storage, transport, and refueling in the hydrogen sector. The company has shown continuous growth over the years, the profitability trend in the transition year 2024 is steadily increasing, and the necessary investments have largely been completed.

Wolfspeed

Wolfspeed with high government funding and loans totaling USD 2.5 billion
US chip manufacturer Wolfspeed is on the verge of receiving USD 750 million in government funding for its new silicon carbide wafer plant in North Carolina, as announced by the US Department of Commerce in October in a preliminary funding agreement. At the same time, Wolfspeed secured another USD 750 million in new financing through an investor consortium. Wolfspeed, which supplies automotive manufacturers such as General Motors and Mercedes-Benz, specializes in the production of silicon carbide-based chips, which are superior to conventional silicon due to higher energy efficiency and control the energy transfer from the batteries to the motors in electric vehicles. In addition, the company expects tax refunds of one billion USD through the tax credit for advanced manufacturing under the Chips and Science Act. This financial support is crucial for Wolfspeed to achieve its ambitious goals in the e-mobility sector.

Daqo

Daqo with stabilization in sales and strong balance sheet
Daqo New Energy achieved a smaller loss than expected in the third quarter of 2024, and sales were increased compared to the previous quarter. In view of the weak demand, Daqo reduced its production utilization to 50% in the third quarter and produced less polysilicon than in the second quarter. Despite the challenging market conditions, the company has a solid balance sheet, with USD 853.4 million in cash and no debt.

Jinko Solar

Jinko Solar with stabilizations in the prices of its products and return to profit
Jinko Solar surprised the market positively by returning to profitability in the third quarter after previously reporting losses. A more favorable geographic sales mix with higher volumes in the USA caused average selling prices to rise, thus improving gross margins. For the 2024 financial year, Jinko Solar continues to plan to pay a dividend corresponding to a yield of 7.80%. Module prices remained stable in the third quarter, and deliveries to the USA increased significantly. In September, 20.9 GW of new capacity was installed in China – an increase of 32.4% year-on-year and 26.9% compared to the previous quarter. Jinko Solar expects module shipments of 23 to 25 GW in the fourth quarter of 2024 and a total delivery volume of 90 to 100 GW for the entire year, which consolidates its position as the world’s number one. The planned construction of a 10 GW module factory in Saudi Arabia is another milestone in the global expansion. The n-type TOPCon (Tunnel Oxide Passivated Contact) modules achieved an efficiency of 26.2% and accounted for around 90% of the company’s total module shipments in the third quarter, making Jinko Solar one of the world’s leading companies in terms of technology.

Politische Entwicklungen

Impact of the US Election

The impact of the 2024 US presidential election on the energy transition is noteworthy.

It is expected that the election of Trump as US President will lead to a slowdown in climate protection efforts, without completely reversing them. It will be exciting to see what influence Elon Musk, the CEO of Tesla, will have on the future President Trump. In 2016, when Trump was first elected US President, volatility in the clean tech sector initially increased sharply, only to subside again within the following two months until the end of January 2017. This scenario is conceivable again, and we remain convinced of the long-term opportunities of the current portfolio and recommend sticking to this future orientation.