The DNB Renewable Energy retail A fund climbed 4.56 percent in June, underperforming its benchmark index, which gained 7.57 percent over the same period. Year-to-date, the fund has declined by 8.21 percent, also lagging behind the index, which has fallen 4.75 percent. These figures are detailed in a monthly report from the fund's managers, Christian Bergholt Rom, Laura Natumi McTavish, and Stian Ueland.

 At the outset, the managers note that global equity markets were volatile in June, shaped by tariff concerns, geopolitical uncertainty, and mixed signals from central banks. The MSCI World Index edged up by just 0.7 percent in euro terms.

The managers highlight that the proposed U.S. legislation, often referred to as Trump's "one big, beautiful bill," continues to generate uncertainty for the renewable energy sector. The bill includes, among other measures, an accelerated phase-out of tax incentives and restrictions on purchasing components from so-called FEOC countries, which include China.

The proposal is estimated to increase the U.S. budget deficit by more than $3 trillion over the coming decade. The legislative process remains uncertain, and the consequences for the sector are difficult to assess at this stage.

The managers further report that Benchmark Holdings was removed from the portfolio during the month. At the same time, a smaller position was initiated in Contemporary Amperex Technology, the world's largest producer of batteries for electric vehicles.

The portfolio continues to maintain a significant overweight in IMCD, with a weighting of 7.2 percent. Notable positions are also held in Novonesis (formerly Novozymes) and Darling Ingredients, reflecting the strategy's focus on structural growth.

The managers emphasize the importance of maintaining balance in portfolio positioning to manage volatility without deviating from the fund's long-term investment philosophy.

At the end of the month, the fund's largest holdings were IMCD, Novozymes, and Darling Ingredients, with portfolio weights of 7.22, 7.00, and 6.61 percent, respectively.

Relative to the index, the fund's largest overweight positions were in IMCD, Novozymes, and Darling Ingredients, while the biggest underweights were in ITM Power, Plug Power, and Solaria Energia Y Medio Ambiente.

In terms of geographical exposure, the United States, Denmark, and the Netherlands were the largest markets, accounting for 30.12, 17.77, and 11.93 percent of the portfolio, respectively.
DNB Renewable Energy retail A, %June, 2025
Fund MoM, change in percent4.56
Index MoM, change in percent7.57
Fund YTD, change in percent-8.21
Index YTD, change in percent-4.75