Miton multi-asset team reviews renewables

Miton multi-asset team reviews renewables

There is a case for exposure to renewable energies, particularly if this can be diversified across geographies and energy supplies, according to Miton Asset Management’s multi-asset team.

An investment update from the team argued that renewable energies were becoming more cost-competitive with fossil fuels while global demand for commercial energy was growing, although the industry faced “teething problems”.

The note said: “We avoid companies producing products that can be commoditised and look for ones that have clear competitive advantages.”

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It highlighted broader benefits of renewables, including helping to achieve environmental objectives, adding: “Similar to any new and growing industry there are some teething issues, notably conflicting subsidy schemes and the problems associated with transporting and storing renewable energy.”