General Development

In August 2026, the fund’s price fell slightly and ended the month down 2.67 percent. Please refer to our fact sheet for complete performance data.

Stabilization in August following the sharp declines of the previous months

In August, 17 of our portfolio companies saw their share prices decline, while 15 stocks rose. The declines and gains spanned all four sectors of the portfolio.

The largest contributors to the losses were Fuelcell Energy, Canadian Solar, Ballard Power, Fluence Energy, Eos Energy, JinkoSolar, and Novonix.

The largest positive contributions came from Ceres Power, Aumann, SMA Solar, Daqo New Energy, and ITM Power.

At the end of the month, the portfolio’s equity allocation stood at 97.1 percent.

Geopolitical Factors and Interest Rate Risks Are Slowing the Recovery

A lasting easing of tensions in the Iran conflict remains elusive. A new trade dispute between the U.S. and Canada has put additional pressure on the financial markets. At the same time, many investors now expect a rate hike in the U.S., while concerns about a renewed escalation in the Middle East are further weighing on market sentiment.

The continued rise in oil prices is also increasing inflationary pressure. At the same time, yields on 10-year government bonds reached their highest level in 19 months—another sign of growing risk aversion in the financial markets, which overall prevented a more pronounced recovery among the companies in our portfolio.

Overall, the market environment therefore remains challenging. However, as the year progresses, we expect to see increasing momentum at the company level, which should enable our portfolio companies to decouple themselves from this negative market environment.

Purchases and Sales

We took advantage of the sharp price pullbacks in Eos Energy to strategically increase our position. The purchase was financed by a partial sale of First Solar and by new cash inflows in August.

Corporate Developments

Canadian Solar

Energy storage is emerging as a driver of growth

In the second quarter of 2026, the battery energy storage business emerged as Canadian Solar’s key growth driver. Shipments reached 3.7 GWh, up 73 percent from the prior-year period and significantly above the company’s own forecast. At the same time, the storage business’s order backlog, including long-term service contracts, rose to $3.5 billion.

Energy storage is gaining importance relative to solar panels

The strong performance in the energy storage business is increasingly offsetting the continued challenges in the solar module market. While module shipments declined by 60 percent compared to the previous year, Canadian Solar now has a development pipeline of approximately 84 GWh in battery storage. This underscores the growing strategic importance of this business segment.

Expansion of Production in the U.S.

At the same time, Canadian Solar is making significant investments in expanding its U.S. production. In July, the first phase of a new solar cell factory in Indiana with a capacity of 2.1 GW was opened; this is set to be expanded to 6.3 GW in the long term. In addition, the production capacity for solar modules at the plant in Texas is being expanded from 5 to 10 GW.

Profitability Remains Under Pressure

Despite operational progress, the market environment remains challenging. Quarterly revenue reached $1.2 billion, while the gross margin declined to 13.9 percent and the company reported a net loss of $77 million. However, with cash and cash equivalents of approximately US$1.9 billion, Canadian Solar continues to have a solid financial foundation.

Positive Outlook Due to Growing Storage Business

For the third quarter, Canadian Solar expects revenue to rise to between $1.3 billion and $1.5 billion and for battery storage shipments to remain strong. We are particularly optimistic about the rapidly growing storage platform, with its large order backlog and extensive project pipeline. It is likely to make an increasingly important contribution to the business in the future and reduce dependence on the cyclical solar module market.

Ballard Power

Ballard Power Acquires GeoPura and Expands Its Business Model

Ballard Power Systems has completed the acquisition of the British hydrogen company GeoPura for an initial price of 275 million GBP. GeoPura produces green hydrogen, operates its own logistics infrastructure, and offers decentralized hydrogen power supply as a service. The systems used for this purpose already utilize Ballard fuel cell modules.

From Fuel Cell Manufacturer to Integrated Energy Provider

Through this acquisition, Ballard is significantly expanding its business model. In addition to developing and supplying fuel cell technology, the company will now also be able to offer hydrogen production, distribution, and complete “energy-as-a-service” solutions. This creates a more vertically integrated hydrogen platform.

Additional Markets for Fuel Cells

The integration of GeoPura opens up new application opportunities for Ballard’s fuel cell technology. In addition to its existing core markets—buses, rail, and shipping—the company plans to offer decentralized power supply solutions in sectors such as construction, events, film production, healthcare, and defense.

Ballard is financing the acquisition with cash and stock

The purchase price, initially set at 275 million GBP, will be financed by 82.5 million GBP in cash and primarily through newly issued Ballard shares. Upon the achievement of certain financial targets, the purchase price may increase by an additional 27.5 million GBP.

A Strategic Move for Further Growth

With this acquisition, Ballard is evolving from a pure provider of fuel cell technology into an integrated provider of zero-emission energy solutions. From our perspective, what is particularly interesting is the opportunity to tap into additional markets for its own fuel cell technology while simultaneously playing a greater role in the entire hydrogen supply value chain.

SMA Solar

SMA Solar Taps into the Growth Market for AI Data Centers

SMA Solar is strategically positioning itself in the rapidly growing market for AI and hyperscale data centers. With its new SMA GridAssist and GridLink solutions, the company offers systems for grid stabilization, uninterruptible power supply, and more efficient grid connectivity. Starting in 2027, a solution for the 800-volt DC architecture—which is becoming increasingly relevant for AI data centers—is also expected to be available.

Significant Additional Revenue Potential

SMA expects revenue from data center solutions to reach the mid- to high-double-digit millions of euros as early as fiscal year 2027. The company can leverage its long-standing expertise in power electronics, grid integration, and intelligent control systems. The rapidly rising power demand from AI applications thus opens up an additional growth market for SMA beyond its traditional solar and storage business.

Renewable Energy as a Location Factor

The planned investment by the Schwarz Group of up to 5.6 billion euros in a new data center near Rostock also demonstrates just how important energy supply has become for new data centers. Key factors in the choice of location included the availability of large quantities of renewable energy and a high-performance grid connection. In our view, this underscores the growing importance of renewable energy, power grids, and smart power electronics for the continued expansion of AI infrastructure.