Obama marks a milestone for green investment

The inauguration of President Barack Obama is a landmark for green investment, says Charlie Thomas, manager of the £268m Jupiter Ecology Fund.

He says: "President Obama's pledge to create a clean energy economy in the US is very encouraging. In his quest to stabilise the US economy, he has outlined a targeted spending plan that should create long term growth opportunities for businesses at the forefront of the transition to a green economy.

"The US Congress is due to make a decision on the $825bn American Recovery and Reinvestment Bill of 2009 on February 20. The success of this bill would mark a sea-change in US federal government attitudes and policy towards climate change. The bill is expected to lead to the creation of green collar jobs - potentially half a million - in the alternative energy and building industries.

"Alternative energy production would double, at a cost of $54bn, and the energy efficiency of homes and government buildings would be improved. The rationale for this is to improve energy security in the US as well as reduce carbon emissions. Meanwhile, $90bn will be spent modernising roads, bridges and waterways, with a large chunk of the budget being spent on environmentally beneficial projects.

"While the Bill is yet to be passed by Congress, its content speaks of the new president's commitment to environmental issues and suggests a much more positive international stance for the US in the effort to tackle climate change."

For about a year, Charlie has been incrementally increasing exposure to the US. He says: "The groundswell of support for environmental projects at state and corporate levels has stimulated innovation and exciting new investment opportunities. The inauguration of Present Barack Obama promises to create a positive environment for green companies. However, it is worth noting that any legislative measures may take some time to translate into profits for businesses in this area. In spite of positive momentum, the green investment universe is still vulnerable to the wider influences of the current economic turmoil."

The Jupiter Ecology Fund currently holds 25% of its assets in US companies. These include waste management companies Stericycle and Republic Services.

In the past five years the Jupiter Ecology Fund has produced a return of 54.6% compared with 19.1% for the IMA Global Growth sector. This places the Fund 7th out of 139 funds with a five year track record. Charlie Thomas has been managing the Fund since September 2003.