This remains a challenging period for environmental investors, as it is for investors in general. The credit crunch has resulted in some major historical events in the Western fi nancial system. The implications of these are still to be digested by stock markets.In these diffi cult times, we believe it has been important to stick to our convictions and to our underlying strategy. We maintain our long term approach, with a focus on our six green themes as well as those companies with active social and environmental governance policies. A defensive cash position was built up in 2007 on concern some stocks were becoming fully valued on a short term basis.More positively, we attended a conference in the US during the summer where we met with 30 US and Canadian companies. During the trip it became increasingly clear that attitudes towards the environment are changing - not only at the political level but among corporates and consumers. The trip was very encouraging and there is now real momentum with regard to the environment.Significant investment opportunities are emerging as a result. Ultimately, we believe the current downturn should prove a good buying opportunity for long term investors.
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