Hydrogenone Capital Growth Share Discussion Threads

[jonwig] 29/3/2023 14:19

But would it matter? There are lots of funds which are misusing this moniker. I've never much bothered with HGEN's ESG policy, but you can download it here:

[adobbing] 29/3/2023 14:13

Would this explain recent downtrends ?



Hundreds of funds to be stripped of ESG rating

Unpublished BlackRock research also reveals thousands more will be downgraded in wide-ranging MSCI shake-up

March 24 2023
Wind turbines under a dark sky
Swap-based synthetic funds are among those that will no longer receive an environmental, social and governance rating © DPA/AFP via Getty Images
Hundreds of funds are about to be stripped of their environmental, social and governance ratings and thousands more will be downgraded in a shake-up being pushed through by index provider MSCI.

The impact could be particularly acute in Europe where a growing number of institutions will only invest in funds that are deemed to be compliant with ESG-investing principles. In 2022, ESG exchange traded funds accounted for 65 per cent of inflows into European ETFs, according to Morningstar.

MSCI, which has $13.5tn of assets benchmarked against its indices, is yet to publish the results of a consultation on its ESG ratings. But according to a client note from BlackRock’s iShares arm, the world’s largest ETF provider, seen by the FT, the number of European ETFs with a triple-A ESG rating from MSCI is set to tumble from 1,120 to just 54, while the number with no rating will surge from 24 to 462.

The changes are part of a push by index providers to tighten up the criteria for what qualifies as an ESG-compliant fund amid pressure from regulators concerned about the prevalence of so-called “greenwashing” as the sustainable finance industry expands rapidly. The sharp reduction in funds with top ratings could mean that ESG-focused investors have fewer places to put their cash, potentially driving up the price of assets with a sustainable label.

Under MSCI’s changes, all “synthetic” ETFs that use swaps to track the value of assets will lose their ESG rating — even if funds that own the identical underlying assets are rated highly.

In addition, most “physical” funds, which directly hold portfolios of equities or bonds, are likely to have their rating lowered.

The changes, due to take effect by the end of April, will apply to all ETFs and mutual funds globally.

MSCI declined to comment on the scale of the downgrades. The company said its changes “will lead to fewer funds being rated as AAA or AA and will reduce the volatility in ESG fund ratings, which are outcomes that our client base broadly supported”.

In Europe alone, 1,476 ETFs will have a lower rating, 905 will be unchanged and 78 will have a higher rating, the iShares research indicated. A further 446 funds will lose their rating entirely, including more than 400 derivative-based funds.

Bar chart of ESG ratings from MSCI, before and after the impending changes showing European-listed ETFs
If the same picture was replicated across ETFs and mutual funds worldwide then it is likely several thousand funds would be downgraded.

The most draconian change will affect synthetic, swap-based ETFs, which have a swap contract in place with a counterparty to replicate the performance of the underlying assets, rather than actually owning the assets themselves, as a physical ETF does.

MSCI said in its statement that “the [ESG] rating is calculated based on a fund’s underlying holdings data. In the case of swap-based ETFs, the underlying data MSCI receives in most cases is the swap collateral holdings, rather than the constituents of the underlying index that is tracked.

“Therefore, we will no longer rate swap-based ETFs until we have determined a method to consistently rate a swap-based ETF based on the constituents of the underlying index that it tracks.”

Recommended

MSCI did add, though, that while it was moving away from rating the funds on the basis of their underlying indices, “investors in swap-based ETFs are exposed to the ESG risks and opportunities of the underlying index rather than the collateral”.

By contrast, S&P Dow Jones’s ESG ratings are based on indices, not funds, so a swap-based ETF tracking the S&P 500, say, would have the same rating as a physical one replicating the same index.

“The product provider has the ability to exercise discretion on how they intend to track or replicate the index, including using derivatives instead of holding an index’s constituents directly,” S&P said.

Jack Turner, head of ESG portfolio management at 7 Investment Management, called for “more industry guidance on how to measure the ESG risk of derivatives in portfolios”.

“MSCI’s change probably reflects the lack of an industry-wide approach,” he added.

MSCI’s second change affects the ESG rating of physical funds.

[rogen83] 29/3/2023 09:17

done in multiple trades, 60k etc

[skinny] 29/3/2023 08:57

"Seven of the Company's private investments, representing 89% of its invested portfolio by value, are revenue-generating, producing equipment and technology solutions for clean hydrogen production. The unaudited aggregate revenue from these investments was c. 33 million in the 12-month period to 31 December 2022, an increase of 110% from 2021 on a pro-forma basis."

[31337 c0d3r] 29/3/2023 08:52

I don't see that trade

[rogen83] 29/3/2023 08:05

picked up 100k before 810am this morning

[jonwig] 29/3/2023 06:11

"Nothing to see here, guv."

[tenapen] 28/3/2023 16:21

Thanks jonwig.

I'm always happy to read your posts.

[trollwatch] 28/3/2023 12:25

jonwig, I can see you are losing huge amounts of money on practically everything in your rotten portfolio. You never were any good on investment matters. Doesn't stop you from trolling and pontificating emptily in your 20,000+ (sic) posts, though, does it?

You and your best buddy spectoacc (alias bighead from York) must be down to your last few quid. TeeHee.

[jonwig] 28/3/2023 11:39

No recent news items I can find about any of the private investments.

Down rounds are always a potential problem in markets such as these, and they can be difficult to recover from.

EDIT: following quoteds (ITM, CWR) down?

[calama] 28/3/2023 10:23

Not sure but pleased I got out a while ago. I guess the penny has dropped that hydrogen is not going to be the planets saviour any time soon and we will need the black stuff for the foreseeable.

[healthtech] 28/3/2023 09:53

Why is this tanking?

[skinny] 24/2/2023 09:26

Yesterday's investormeetcompany recording is available :-

[jonwig] 17/2/2023 07:18

HydrogenOne, the first London-listed fund investing in clean hydrogen for a positive environmental impact, is pleased to advise that the Company's Investment Adviser, HydrogenOne Capital LLP, will be presenting to retail investors at UK Investor Magazine's Investment Trust Conference at 15:00 GMT on Wednesday, 8 March 2023.

To register for the event and to watch this presentation, please use the following link:

[jonwig] 10/2/2023 07:01

JLEN and HydrogenOne investing in green hydrogen.

JLEN Environmental Assets and HydrogenOne Capital Growth are making their first investments into the green hydrogen sector.

JLEN is buying a 33% equity stake in Foresight Hydrogen Holdco GmbH. Foresight Hydrogen Holdco holds a 75% stake in HH2E Werk Thierbach GmbH, a Special Purpose Vehicle which owns the development rights to the Thierbach green hydrogen project, a large green hydrogen production plant near Borna in Germany, capable of producing around 6,000 tonnes (over 200,000MWh) of green hydrogen per year during its first 100MW phase. Green hydrogen will be produced through electrolysis powered by renewable electricity. The project will also integrate battery storage.

Thierbach is currently under development by HH2E AG, a developer of hydrogen projects in Germany.

HydrogenOne already owns a £5m (€6m) stake in HH2E AG and is making a £2.4m (€2.8m) investment in the Thierbach Project.

Foresight Hydrogen Holdco also owns 7.6% of HH2E and holds the right to majority fund future projects developed by it.

More -



Tierbach operating from 2025, full capacity 2030 ...?

[tenapen] 08/2/2023 20:27

Thank you jonwig.
I'll take a good look at Strohm, for information mainly.

The hydrogen future's bright.

[jonwig] 08/2/2023 20:06

The presentation slides are on the website (Investors - Docs and Pubs).

It was excellent, and I think there was a good bit of buying between 9 and 9:30 on the strength of it.

Their private investments aren't start-ups, they are companies which are already, or close to, revenues and positive EBITDA. Two of them are looking to hire investment banks (ie. trade sale or IPO).

The plan is to hold an investment for say 5 years and make 2 - 2.5 times before selling and recycling. Invetsment partners are big firms (Centrica, Amazon, Foresight, etc.) so they aren't out on a limb.

Obviously no fundraising owing to discout. Their £17m cash will be used for top-ups, mainly.

They are particularly excited about Sunfire and Strohm.

Another meeting day on 23 Feb.

[tenapen] 08/2/2023 08:06

Hi jonwig,
I've looked at Sunfire and I would buy if I could. The others I'll look at when I have time.

If your watching the webinar and have any feedback, I would like to read your thoughts.

Regards.

[jonwig] 08/2/2023 08:03

Update -



NB Webinar at 9:00.

[jonwig] 03/2/2023 12:12

James Carthew article, 31/01 -



Register free to read.

[tenapen] 31/1/2023 18:48

The UK talks the talk, but doesn't do any walking.



TECH
UK pulls plug on top tech incubator after setting out to become ‘world’s next Silicon Valley’
PUBLISHED TUE, JAN 31 20239:40 AM EST
Ryan Browne
@RYAN_BROWNE_


Tech Nation will close its doors on March 31, the tech accelerator program said Tuesday.

The U.K. government diverted grant funding for the program to the startup incubation arm of Barclays Bank.

The move has raised questions over the U.K.’s ambitions to become the “world’s next Silicon Valley.”

Cont...

----------

Arrival, the UK start-up focusing on development of commercial electric vehicles, has revealed that it is to cut its workforce by half as it focuses on incentives to build its operations in the United States.

[jonwig] 30/1/2023 07:15

... will publish its quarterly portfolio and NAV update for the period ended 31 December 2022 on Wednesday 8 February 2023.

The Company's Investment Adviser, HydrogenOne Capital LLP, will be hosting a 30-minute live webinar presentation for investors and analysts commencing at 9am GMT on that day.

In order to register for the webinar, please follow the link:

.

The presentation will also be available on the Company's website at

.

[tenapen] 28/1/2023 17:42

Are we worried about the long term future of our clean energy industries? Absolutely not,” [Jeremy] Hunt added.

I'm looking forward to reading his plans in full.

[skinny] 27/1/2023 13:52

Jonwig, I understand what you are saying, but I made a conscious decision to be invested in that area - firstly directly via companies like Ceres, AFC & ITM and as
I've reduced my holdings and taken profits on all of these, I've diversified into vehicles such as HTWG, that has interests in companies like NEL, Linde etc - so diversification within the area.

You mention Siemens Energy - they are at least a player in hydrogen :-

[tenapen] 27/1/2023 13:42

Johnson Matthey gave an nterview to FT late last year, how the UK is giving up any lead it had in the Hydrogen sector. Things have only stayed the same .... at best.

It's now behind a paywall, but we can still see the header.
"UK has fallen behind in hydrogen power race, says Johnson Matthey chief" - FT.com



The future is Bright