Host:		Good afternoon and welcome to the live webchat. Bozena and Mark are here and ready to take your questions.
Bozena Jankowska and Mark Hoskin:		Bozena: Hello, I look forward to receiving your questions. Mark: We look forward to trying to help you this afternoon.
Huw Jones:		Can you define exactly what you mean by sustainable investing? I have heard some commentators say funds that I would consider to green are infact unethical. Thnx
Bozena Jankowska and Mark Hoskin:		Mark: There are a lot of buzz words in this sector and they mean different things to different people. You hear people talking about sustainable investing, green investing, and ethical investing. More recently ethical investing has come to incorporate all of these things, for example the chairwoman of UKSIF runs an ethical investment week in November but within this she would include all funds under the umbrella of sustainable investing, and these can run from very light touch with no ethical screens, by which I mean they don't exclude companies based on negative criteria such as first state asia sustainability through to funds like the Allianz RCM Global EcoTrends Fund which invests in green tech, all the way to one of the oldest funds in the market the F&C stewardship income, which probably excludes, based on armaments, animal testing, alcohol and human rights among other criteria, but doesn't necessarily have any particular environmental focus and probably excludes 40% to 50% of the market. So if you consider investing in armaments companies as being unethical then there will be green funds who invest in technology used by the military for example one of the biggest investor in renewables in the US is the US military.
Greeny:		When does this Copenhagen Summit actually start?! I have seen loads in the press, but am not aware of any meetings or actions taking place yet. I want to know what this will mean for my environmentally friendly investments! Any help welcomed.
Bozena Jankowska and Mark Hoskin:		Bozena: The actual Copenhagen discussions start next week. In the lead up to Copenhagen there have been a succession of meetings over the year to try and put together a framework to work from in finalising a successor to Kyoto. There have been a lot of concerns around the lack of action or consensus between developed and developing countries. And so the concern up to about a week ago was that there would be no outcome from Copenhagen. However, over the last week, both the US and China have for the very first time have publicly announced their intentions to reduce carbon emissions, hoping to set the stage for Copenhagen. So the expectations have actually become more upbeat as a result of that. So what does this mean for environmental technology funds? with there being a bigger consensus on climate change with target sets, with a growing need for low fossil fuel energy - trying to replace coal fired power stations with wind farms, solar farms, geothermal, waste-to-energy and nuclear. Also there’s the low hanging fruit, eg. measures to advance the growing energy efficiency in buildings and lighting, as well as industrial processes. Examples include building insulation, and LED lighting. Mark: It is incredibly important because environmental technology relies on government support, in terms of feed-in tariffs, carbon credits etc. And if Copenhagen increases government support for these kind of incentives, then long term it will have a positive impact on your investments. It is also important as part of a process to change people's attitudes towards climate change because society needs to culturally change to enable politicians to put these incentives through parliament in the confidence that they will be re-elected.
anon:		Environmental technology? Sounds like a contradiction in terms! Please explain.
Bozena Jankowska and Mark Hoskin:		Bozena: I would define environmental technology as technologies of the future. They can either provide products or services which provide solutions to a myriad of environmental problems and challenges which have happened in the past and which we are trying to avoid. So examples range from environmental technologies to address water needs, reducing air pollution and land pollution and moving towards lower carbon energy forms. Some of these problems can be resolved by cutting back on industrial activity but clearly that is not realistic so as we continue to grow, we need to learn to use resources more efficiently and that can to a great degree be done by environmental technologies. So technology of the future that will help us address these problems would include things such as solar power, technologies that help to provide clean drinking water in the developed and developing world, help to reduce emissions from coal fired power plants which produce acid rain and which enable us to be more efficient and cut down our own energy bills by putting new insulation into roofs and buying lower energy light bulbs. And this is just the tip of the iceberg, pardon the pun!
BNPaul:		Hello people. Are investors best to invest indirectly via companies involved in this area, or directly via the actual commodities themselves?
Bozena Jankowska and Mark Hoskin:		Mark: I think it depends on your attitude towards risk, and also your approach to investing in climate change. We would typically use investment funds to get exposure to this area, but we have in the past, invested directly in commodity exchange traded funds to make a play on what we would call climate change commodities. However, within a portfolio these have very different risk characteristics, and may or may not be appropriate for different individuals. Clients will also have a different view on what is a green commodity. For example, natural gas is much cleaner fossil fuel than coal or oil, and has ben very important in reducing carbon emissions to date. You might also like to invest in plutonium or uranium but you have to be pro-nuclear, which is very carbon friendly but many ethical investors don't like it.
Eco Investa:		Can you explain to be the decision making process and investment philiosophy when picking investments such as these for your fund?
Bozena Jankowska and Mark Hoskin:		Bozena: for us its a disciplined process where we focus on quality, growth, and valuation. So companies which display those qualities are those which we have a preference for. I work with a broad universe with clean technology stocks of around 450 -500 stocks all of which we know have got exposure to one of several of themes we're looking to gain exposure to: water, pollution control and clean energy. Using that universe of stocks we then apply a number of different screens e.g. quality and valuations screens to allow us to narrow down the universe and then undertake more detailed focused, fundamental analysis on stocks to better understand the sustainability of their earnings, their market share, future outlook. We incorporate that into assumptions behind our valuations to enable us to value their business and help us to decide if there is upside or downside risk to their share price. If we see that the market is not properly valuing the business because it is overlooking something then this is a stock that we would like to hold and provide a good investment because we believe it provides a good opportunity for our clients
Piers Surrey:		Is there a way to get investor exposure to carbon trading schemes?
Bozena Jankowska and Mark Hoskin:		Mark: There are a number of ways to get exposure to the carbon market. But I would point out that none of these have been particularly successful recently because the carbon price has come down from about 20 euros a tonne to 13 euros a tonne, and its hasnt recovered. Arguably, therefore, it may be a good time, depending on Copenhagen, to back these type of investments. You can get exposure in the AIM market through a company called Trading Emissions Plc. They invest in profjects in the developing world and retain carbon credits for sale on the open market. Alternatively, ETFS have an exchanged-traded fund called, ETFS Carbon which would give you exposure to this market. I would qualify this by saying that this is a high risk area to be involved in - but could form part of a portfolio.
Sarah Greeny:		Are there any must-have (in the future) green technologies we will have to haev in every home that I could look to invest in. I was considering something like smart meter manufacturers?
Bozena Jankowska and Mark Hoskin:		Bozena: Yes well smart grids are something we're going to see deployed over the coming years not only in the UK but in Europe the US and emerging markets like China. Smart grids are a way of enabling utility companies to better anticipate energy needs and manage those more effectively. This is particularly important when we're having more alternative energy being plugged into the grid. Eg wind farms. There are a number of companies that provIde a range of smart grid solutions, right from the smart meter themselves, to ultra high voltage lines which are more efficient at transporting energy. Other technologies which are a few years down the road include fuel cells. These are cells for the home which will enable users to generate their own electricity and heat in and around the home. In effect it is like having a mini power station in the house.
George:		Investing in sustainability often just seems like another call to invest in energy firms. How can investors target the smaller lesser known companies or sectors instead of just ploughing more cash into massive gas, oil or energy firms?
Bozena Jankowska and Mark Hoskin:		Mark: The best way of investing is through funds. Funds like the Allianz Global EcoTrends Fund will invest in companies which most UK investors will not have heard of, and certainly doesnt include BP, Shell, Exxon Mobile - or any other blue chip stock which you will have seen in nearly all private portfolios 20 years ago. Bozena: For example, in the fund I would hold, Vestas, wind turbine manufacturer, Iberdrola Renovables, a wind farm operator. We also hold geothermal companies such as, Ormat Technologies. Alstom which is a large industrial company, also is heavily involved in nuclear power build-out. Mark: These companies are as big as companies like Aviva and National Grid, and if you want a flavour of how big they are compared to FTSE 100 companies go to our website www.holden-partners.co.uk and download our 2008 guide to climate change investment which identifies the companies involved and their market caps relative to the FTSE 100.
Big Momma's Greenhouse:		Would you recommend environmental technology for CTFs? What’s the long term future for environmental technology?
Bozena Jankowska and Mark Hoskin:		Mark: I think this would be an excellent thing for a Child Trust Fund to be in because you are taking a very long term view. However, I don't know of one environmental fund that is available through a Child Trust Fund. If you know of one please let me know!
Victoria Hartley, editor, Investor Today:		Developing economies like Brazil, Russia, India and China are likely to see infrastructural spending help to combat climate change. Which other countries should investors also be looking at in terms of green spending opportunities?
Bozena Jankowska and Mark Hoskin:		Yes it is true that developing economies have announced large stimulus packages which include large amount of money being spent on infrastructure. In fact just one week ago I retuned from an extensive tour of China where I had the opportunity to visit 15 companies which directly stand to benefit from this spending and these include smart metering companies, fast rail infrastructure, wind turbine manufacturers, waste to energy generators and nuclear equipment manufacturers. The trip highlighted to me the strong commitment that the Chinese government has towards deploying green technologies whilst it is looking to build its infrastructure and grow its economy. In terms of other countries stimulus packages have also been announced by the US, by Europe including the UK, all of which have dedicated a percentage of the stimulus funding towards the deployment of green technologies to address things such as climate change and energy efficiency. The best way to tap into this global stimulus spend is to invest in, for example, a portfolio which is global and invests across a broad range of environmental technologies, such as the Allianz RCM Global EcoTrends fund.
McTavish:		Does Climate change provuide the element of "fear" necessary in the market to get this sector performing?
Bozena Jankowska and Mark Hoskin:		Mark: I think most of the world still doesnt recognise climate change. And until the sea levels rise by a metre, no one is really going to take it seriously enough. All targets are set 20-50 years out, which allows politicians to reset priorities in the short term. Ultimately, though, fear will drive this sector - there's just not enough of it at the moment! Bozena: Its not just climate change that drives deployment of alternative energy. Although it is a very important driver. Other factors, such as energy diversification and security are other catalysts for alternative energy. What I mean by energy security, is becoming less dependent on foreign energy sources. For example most of the UK's gas comes from Russia, and many sources of oil are now found in increasingly politically unstable regions of the world.
Deirdre Grusovin:		I think that ethics probably go out the window during a downturn... Cheeky question, but if you could both invest in one unethical investment what would it be and why?
Bozena Jankowska and Mark Hoskin:		Mark: If you take the view that climate change is going to happen and sea levels will rise by two to three metres, i would be investing in armament firms and security firms, because climate change will engender at its worst, huge migrations of refugees searching for food, water and a place to live, which will inevitably lead to increasing conflict. Bozena: I would argue to the opposite that ethics have been thrown out of the window during the downturn. All you need to do is take account of what's been going on in the financial system and how the lack of governance and ethics have led to the problems we have seen. This has led to a heightened focus on pay packages and bonuses of banking chiefs and employees. Secondly, if you look at the announced global stimulus packages, all the way from China to the US, to even South Korea, each stimulus package has a dedicated percentage of funding allocated to environmental technologies. And the governments are also seeing the support of these green industries as a stimulus for economic growth and creating industries of the future that they can export. Using South Korea as an example, the goverment has allocated as much as 89% of its stimulus funding to environmental technologies.
Brainbox:		If the UK - with its huge demnd for renweable energy - can't even manage to keep one single wind turbine comapny in business, what hope is there for commercialising this sector.
Bozena Jankowska and Mark Hoskin:		Bozena: Probably I think this is in reference to the closure of the Vestas wind turbine manufacturing plant in the Isle of Wight. First, Vestas is the number one wind turbine manufacturer in the world and is profitable, and will stand to benefit from a resurgence in demand for wind turbines coming from the US and to a lesser extent China. The reason why the manufacturing plant was closed was that Vestas could not see the UK as a robust market for wind. I would say this is very disappointing and should clearly be taken as a warning to the UK government: the UK has the richest wind sources in Europe, however due to what I see as ridiculously over burdened planning laws and regulations, wind installation is being hindered making it more difficult for the UK government to reach its own CO2 reductions targets. Recently the UK government announced that it would be looking to improve the planning process but this needs to be speeded up and we may see proper growth of wind in the UK. Mark: the sector is commercialised but its not being manufactured int he UK which is a common story in the UK. Long term planning is a particular weakness of the UK and while we're good at setting targets we're not particularly good at implementing them. This is because we have a very un-coordinated system which is not properly thought through. As a side note Denmark gets 20% of its energy need from wind alone, we are probably in just as good a wind position as Denmark.
Ian Wells:		I'm quite worried about the Dubai situation as I have a bit of money tied up there. Will this impact adversely on your industry? Does clean tech cover the Far East?
Bozena Jankowska and Mark Hoskin:		Bozena: As far as my fund is concerned we don't have any direct or indirect impact from the situation in Dubai. With respect to technologies in the far east, yes there are a number of technologies being developed and exported from China. The number one export in the clean tech space is solar panels.
DonaldW1:		Who are the leading fund managers in this area? I have heard of Bozena but very few others! and am keen to understand the whole market before i leap!
Bozena Jankowska and Mark Hoskin:		Mark: If you want to research this market you can go to our website www.holden-partners.co.uk and download our 2008/2009 guide to climate change investment.
Mrs Mills:		Does the impact of natural resources such as gold and oil impact on you and your funds performances?
Bozena Jankowska and Mark Hoskin:		Mark: The short answer is yes! If you are talking about oil, the price of oil is a key driver to investment in renenwals, but it is the cost of fossil fuels, together with government penalties that is driving investment in renewables. Gold is an interesting investment, and I'm not sure if this does not really impact on climate change funds, typically. Although, I will say that one fund, that is a multi-asset fund due to launch in the New Year called the Climate Assets Fund, which actually holds a gold exchange-traded fund. Bozena: I would agreed with Mark on the price on oil. Clearly the sentiment towards alternative energy is linked to the price of oil but it is a very indirect link because when a wind developer decides to build a wind farm, the key consideration is 1) the cost of turbines, and 2) the support that project can get from financial incentives for generating the low carbon energy. And so the price of oil is rarely a consideration for a developer when deciding to build a wind farm.
Host:		Unfortunately, that is all the time we have for today. Thank you for all your questions.
Bozena Jankowska and Mark Hoskin:		Mark: I hope today has helped you in your understanding in this market, and hoped to make you realise what an opportunity there is in this investment area. At Holden Partners we help clients tailor their portfolios to take advantage of this area. Please see our website for further information - or give me a call! Bozena: Thanks for all the interesting questions. In having been involved in this sector for the last 12-13 years, what gets me most excited at the moment is the concerted move by global leaders to address global environmental problems such as climate change. In my view, this is just the beginning of what I believe to be a phenonmenal long term trend and investment opportunity.