Green Mutual Funds back in Fashion


Investors who have exited the colloquially named “green” mutual funds after Donald J. Trump won the US Presidency in 2016 are now putting money back in companies which specialize in renewable technologies like solar and wind energy. The former has divested almost $68 million from the “green” funds due to fears that the then brand new president will have a pro-coal agenda and subsequent actions would hurt the renewable energy companies.

Coal out, renewable in

According to a survey where 32 utilities located in a number of Republican states responded, that none of the states plan to increase the consumption of coal solely due to Trump's bidding. A number of them have already made plans to move to cleaner and cheaper alternatives. The list of such clean energy sources includes solar and wind. There were no response from the White House when asked to comment whether the Trump administration will boost coal production. It also declined to answer when asked about solar and wind technologies. Green funds are those whose investment strategies are based only on the environmental criteria. Many such funds avoid buying shares of mining and gas companies. They also decline to purchase shares of traditional oil firms.

Data gleaned from the Lipper unit of Thomson Reuters' reveals that those days of anxiety are past now, with investors pushing in almost $83 million spread over 22 green funds during January, February, March and April months in 2017. The reasoning behind investors' renewed faith lies in the logic that President Trump will fail top revive the stumbling coal industry. It is also reasoned that the government will not take away the many subsidies provided by it to the renewable power industry. These subsidies are essential. Both Republicans and Democrats support such financial subsidies.

Job growth

As per Joe Keefe of Pax World Management LLC, wind power and solar power are creating a number of jobs. This will stay for a long time. Keefe heads the largest green fund sector company, the $418 million worth Pax Global Environmental Markets. The Lipper tracked average six month return from 22 green funds was calculated to be 9.37 percent.

 According to Murray Rosenblith of New Alternatives Fund, the coal industry suffers from a number of marketplace problems which are too large for government solutions. Rosenblith is a portfolio manager of his company. He asserted that it would be impossible for Trump to make the coal industry prosperous again.

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