Clean technology provides opps for 20-30% growth

Growth of 20% plus could be seen in the clean technology sector as historically low price to earning valuations are played out, say eco-focused fund managers.

Bozena Jankowska, manager of Allianz RCM EcoTrends, says sell-offs mean there are attractive investment opportunities.

"Growth of 20% to 30% in this area is possible," she says.

Nigel Taunt, managing director at Impax Asset Management, agrees saying the small-cap universe, in which many of these companies exist, has been especially hard-hit in the past six months because people doubt the amount of liquidity available and are selling.

"We are seeing some incredibly inexpensive valuations in the clean tech space. Some of my colleagues who invest in listed companies are scratching their heads when they see some of the share prices fall," he says.

Impax's environmental markets funds have been hit by the falling prices, and Taunt says he would hope a bounce back would eventually be greater than that anticipated by Jankowska.

"Our net assets in those funds have fallen from peak to trough a bit over 30%. So, given the way the market has been absolutely hammered since September, seeing a bounce back of 20% would seem to be a modest ambition for several years," he adds.

Many fund managers specialising in green investment are expecting large windfalls from various stimulus packages, all of which aim to include chunks of money for eco-friendly projects.

Data shows the US dedicating upwards of 12% of its $972bn package to green projects, while South Korea has an astounding 81% of its $38.1bn package earmarked for the same area.