‘Green’ mutual funds bounce back after Trump-induced retreat | Reuters

BOSTON After U.S. President Donald Trump’s election last November, investors pulled nearly $68 million from so-called “green” mutual funds, reflecting fear that his pro-coal agenda would hurt renewable energy firms.

But now investors are pouring money back in, boosting net deposits in 22 green funds to nearly $83 million in the first four months of 2017, according to data from Thomson Reuters’ Lipper unit.

Investors’ renewed faith in the funds reflects a growing belief the president will not succeed in reviving the coal industry and will not target the government subsidies that underpin renewable power, which have bipartisan support.

(For a graphic on “green” funds drawing new investor cash click tmsnrt.rs/2rir2pw)

It also sends a positive sign for the wind, solar and energy efficiency firms and make up a large portion of the green-fund portfolios.

The coal industry faces problems in the marketplace that are too big for any government to solve, said Murray Rosenblith, a portfolio manager for the $209 million New Alternatives Fund, among the U.S. green funds seeing investor inflows.

“Trump can’t bring back coal,” he said. “There’s nothing that can bring it back.”

A Reuters survey of some 32 utilities in Republican states last month showed that none plan to increase coal use as a result of Trump’s policies. Many planned to continue a shift to cheaper and cleaner alternatives, including wind and solar.

A White House official did not respond to a request for comment about the administration’s efforts to boost coal or its position on wind and solar subsidies.

Lipper classifies “green” funds as those with screening or investment strategies that are based solely on environmental criteria. Many make it a point to avoid purchasing shares of traditional oil, gas or mining companies.

For a graphic showing the turnaround in green-fund investments, see: tmsnrt.rs/2qPISl4

The funds, while still an investment niche, have become increasingly…

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