WHEB Sustainability fund has increased its exposure to solar power stocks on expectations of a rally post Copenhagen Summit.
The fund - which invests across the areas of climate change, demographics and water - has added five companies involved in solar power generation.
"We have been buying stocks that we have had on a watch list waiting for the right time to buy," co-manager Nicola Donnelly says.
"The industry is at a turning point. It has suffered from excess capacity and a collapse in the price of silicon but now orders are beginning to pick up along the value chain and we are seeing financial stimulus beginning to come through."
"There is still some excess capacity but we believe that is discounted by the share price."
Donnelly placed 6% of the fund across solar companies Wacker Chemie, SMA Solar Technology, Trina Solar Suntech Power Holdings and Centrotherm Photovoltaics - taking its climate change to exposure to 40%.
The change also marks a shift away from the fund's defensive strategy, Donnelly says.
"Our exposure to the demographics and water themes provided our portfolio with welcome defensive characteristics in the past few months when climate change stocks have performed poorly, but we think that this theme is going to see a Copenhagen-led rally."
