Holden & Partners Mark Hoskin from IFA / Wealth Management firm and authors of the Guide to Climate Change Investment. Available on www.holden-partners.co.uk .

What is Climate Change Investment? Companies which will benefit from a low carbon economy; alternative energy / energy efficiency/ water treatment / pollution control / waste technology. Main benefactor of high commodity prices and Infrastructure investment

Size of the Mutual Funds market? Region Estimated size of Mutual Funds globally (£m) Europe 24,000 Asia 7,000 US 4,000   35,000 An estimate made by Deutsche Asset Management on 30th November 2007 by screening Mutual Fund and ETFs databases and summing those with key words in their titles, such as environment, green, water and agriculture in order to provide an indication of the size of the global Climate Change Mutual Fund market. It does not include Investment Trusts.

Changes? Fax 1981 Computers 1993 Mobiles 1993 Internet 1999 Energy and energy efficiency?

Why now? The Six “C”s (Ron Pernick and Clint Wilder’s book “the Clean Tech Revolution”) Cost Fuel vs Wind and Sun Capital Corporate / VC / government / Stock markets Competition Governments competing China Emerging economies are placing too much demand on current world resources Consumers Cultural shift to a demand for cleaner products Climate This is driving investment risk analysis and government policy.

Andy Ruben Wal Mart’s vice president of corporate strategy / sustainability: “if you’re not thinking about reducing the amount of waste in your Dumpster, or the amount of energy you’re using or how to lengthen product life cycles, then that’s not truly lowest cost.”

What is it really about? The industrialisation of the developing world Population growth Resource restraints Government policy Climate is only one part of the story.

Who is investing? Mutual Funds – Allianz / DWS/Impax/ Jupiter/ Pictet/ Pioneer /Sarasin / Schroders among others Private Equity – Ludgate Environmental/ Low Carbon Iniative/ Deutsche Bank Blue Chips – BP/Siemens/Toyota/ General Electric

Growth

So what are the risks? Technology winners and losers Slow Change Avoiding the biggest growth theme for the next 20 years

What companies feature? Top 10 Holdings  Holding Country Activity 1 Vestas Wind Systems 3.11% Denmark Wind 2 Gamesa 2.17% Spain 3 Veolia Environnement 2.08% France Water 4 Suez SA 1.46% 5 Stericycle Inc 1.21% United States Waste Disposal 6 First Solar 1.14% Solar 7 Suntech Power Holdings 1.11% China 8 Itron Inc 1.06% Smart grid metering 9 ITT 0.94% 10 Kurita Water Industries 0.89% Japan   15.16% (From an equal investment in Allianz Global Eco Trends, DWS Climate Change, Impax Environmental Markets IT, Pictet Water, Pioneer Global Ecology and Schroder Global Climate Change at 31st January 2008)

Holden & Partners For more information: www.holden-partners.co.uk