General Development

In June 2026, following two exceptionally strong months with a cumulative gain of over 60 percent, the fund’s price suffered a significant decline, losing 22.96 percent of its value. Please refer toour fact sheet for complete performance data.

Most portfolio holdings saw a sharp decline in price in June

In June, 26 of our portfolio companies saw their share prices fall, while only four stocks managed to gain ground. The declines affected all four sectors of the portfolio. Hydrogen companies such as Plug Power, Ceres Power, Ballard Power, ITM Power, Nel ASA, and PowerCell Sweden were particularly hard hit. Solar stocks such as Canadian Solar, Daqo New Energy, First Solar, SMA Solar, Enphase, and JinkoSolar, as well as Novonix, QuantumScape, and Eos Energy, also fell significantly.

FuelCell Energy made the largest positive contribution, benefiting from very positive company news.

At the end of the month, the portfolio’s equity allocation stood at 96.0 percent.

Disappointing market expectations weigh on technology and clean-tech stocks

The financial markets’ expectations of further key interest rate cuts in the U.S., as well as a rapid and lasting de-escalation of the war in Iran, did not materialize in June 2026. In fact, the exact opposite happened, as explained below. This weighed on sentiment in the stock markets and led to significant price corrections, particularly in technology and clean-tech stocks that had previously risen sharply.

Purchases and sales

We took advantage of the sharp price increases in Fluence Energy to slightly reduce our position. In contrast, we selectively added to our positions in the following companies at very low price levels: Eos Energy, PowerCell Sweden, and Novonix.

Geopolitical influences are gaining strength again

Inflation and Central Bank Interest Rate Trends

Rising inflation had a significant impact again in June 2026, particularly on technology stocks and the Nasdaq. At the same time, ongoing uncertainty about a possible resolution to the war in Iran, as well as continued high volatility in oil prices, weighed on market sentiment.

The resulting pressures along the entire value chain led to significant price declines for many stocks that had risen particularly sharply so far this year. Several of our portfolio companies were not spared from this either. Even a negotiated “deal” in the Iran conflict must first prove that it is sustainable in the long term.

Both the rise in the U.S. inflation rate and the U.S. Producer Price Index (PPI) signaled mounting inflationary pressure. This makes it increasingly difficult for the Federal Reserve to justify interest rate cuts. Instead, expectations are growing in the markets that further interest rate hikes may be necessary.

The average inflation rate in the European Union rose significantly again over the course of 2026. This prompted the European Central Bank (ECB) to raise its key interest rate by 0.25 percentage points on June 11, 2026.

Higher interest rates are seen as a headwind, particularly for technology-oriented growth companies, and can therefore put additional pressure on stock prices in this sector.

Impact of the AI Boom

In recent months, numerous companies in the hydrogen, solar energy, battery storage, and smart grid sectors have benefited from the high growth expectations surrounding artificial intelligence.

The growing global demand for data centers and electricity led many investors to view these companies as indirect beneficiaries of the AI boom.

This trend was also evident in some of the companies in which we have invested. In particular, providers of energy technologies, grid infrastructure, and storage solutions were increasingly viewed as essential to meeting the future energy needs of the AI industry.

In June 2026, however, it became apparent that this connection might not only have positive effects. The correction in numerous AI and technology stocks simultaneously led to noticeable declines in the share prices of many clean-tech companies.

Although the long-term fundamentals of our portfolio companies in the hydrogen, solar, battery, and grid infrastructure sectors have not changed, these stocks also came under selling pressure amid general risk aversion and widespread market uncertainty.

Conclusion

From our perspective, the close link to the AI sector is a key factor explaining the recent weaker performance of many clean-tech stocks. The price declines currently reflect not so much a deterioration in the long-term fundamentals of our portfolio companies as the high sensitivity to capital flows and market sentiment in the technology and AI sectors.

Corporate Developments

FuelCell Energy

Strategic Entry into the AI Data Center Market

FuelCell Energy has entered into a strategic agreement with Fit Energy USA to provide up to 380 MW of clean baseload power for AI data centers. The first 30 MW have already been ordered and are scheduled for delivery in 2026. The partnership underscores the growing importance of fuel cells as a reliable power solution for the rapidly expanding AI infrastructure market.

Funding package from the U.S. government

The U.S. Export-Import Bank has approved a $49 million financing package to support the export of American clean energy technology to South Korea. The first tranche, which was disbursed at the end of June 2026, provides the company with net proceeds of approximately $22 million to support the delivery of five 2.8-MW FuelCell Energy units to Gyeonggi Green Energy in South Korea; a second tranche is scheduled to be disbursed in October. The Gyeonggi Green Energy site is one of the largest fuel cell facilities in the world and serves as an important example of the decentralized use of clean energy on a utility scale.

Operational Development and Production Expansion

Although revenue and new orders in the second quarter were lower than in the previous year, and the company reported a significant net loss due to an extraordinary impairment charge, the project pipeline showed extremely strong growth. The volume of submitted bids rose to approximately 4 GW, with data centers accounting for nearly 90 percent of that total. FuelCell Energy is responding to this by expanding its production capacity from 350 MW to 500 MW annually and, with $373 million in cash and cash equivalents and a debt-free balance sheet, has a solid financial foundation.

Conclusion

The weak short-term quarterly results only partially reflect the long-term growth prospects. Far more significant are the company’s strategic positioning in the AI data center market, its rapidly growing project pipeline, and its solid financing. Overall, investors are increasingly optimistic, as FuelCell Energy now has the necessary liquidity to secure highly lucrative, long-term contracts in the digital economy.

QuantumScape

QuantumScape: Key Technology for Electric Mobility

QuantumScape already receives significant support from Volkswagen. It has no plans to engage in mass production itself, but instead aims to carry out projects on a GWh scale by granting licenses to partners. The technology is intended to enable safe energy storage with higher energy density.

A key element of the product strategy is the cell known as QSE-5, which is slated to be the first commercial product. It has an energy density of over 844 Wh/l. In addition, it is expected to be possible to charge the battery from 10 to 80 percent in 12.2 minutes.

In October 2024, the manufacturer began small-scale production and the delivery of B-samples for testing to customers in the automotive sector. In doing so, QuantumScape had significantly advanced the practical testing of the technology in the industry.

Strategic Partnership with Honda

Following Volkswagen in June 2026, QuantumScape has secured Honda as another leading automaker to serve as a development partner. This multi-year research collaboration follows the successful technical validation of the technology and strengthens the company’s competitive position.

The program that has now been announced is designed to span several years and encompasses both battery development itself and the corresponding manufacturing processes. It was preceded by an intensive technical review by Honda, during which the technology was also tested in direct comparison with competing methods.

Honda’s head of research, Atsushi Ogawa, expressed confidence in the results: “The QS technology demonstrated compelling and unique advantages during our evaluation,” he explained, noting its potential for applications far beyond the automotive industry.

Conclusion

For QuantumScape, the deal represents a strategic boost. Until now, Volkswagen—through its subsidiary PowerCo—had been its most important industrial partner. With Honda, a second major automaker is now coming on board, which strengthens its position against competitors.