Miton’s multi-asset team has said it is likely to add to its renewable energy exposure, given the sector’s “compelling” price movements.
The team, headed by David Jane, said a long-term “inflection point” might be approaching in the renewables sphere.
“The most compelling metric is the cost of key renewable technologies, including photovoltaic solar and onshore wind generation, continuing to decline,” Mr Jane said.
But the manager added “a key obstacle to this is whether renewable energies are still an attractive investment after the collapse in the oil price in the second half of last year”.
Mr Jane said the price of renewable energy was more predictable than oil, given it usually offered greater security in terms of its source and was not dependent on “often unstable oil producing regions”.
“It is also important to recall the long-term environmental objective of limiting global temperature rises to below two degrees centigrade and how this requires a significant reduction of greenhouse gas emissions, a cost that is currently externalised but being increasingly considered,” he said.
