Key Points
(Bloomberg) -- Fund managers are betting that nuclear energy, an area traditionally off-bounds for investors with environmental mandates, is set to make a comeback...
Robeco Institutional Asset Management, J O Hambro Capital Management and Janus Henderson Investors are among firms that see a role for stocks exposed to nuclear energy in their portfolios, according to representatives interviewed by Bloomberg...
In the past, we were more on the very cautious side and exclusionary approach, said Chris Berkouwer, lead manager for Robecos Net Zero 2050 Climate Equities fund..
A narrow environmental, social and governance investing mandate left stocks such as Cameco under-loved in the past, he said.. Other examples of nuclear-themed companies range from Constellation Energy Corp., which is up more than 50% this year, BWX Technologies Inc., which has gained more than 20%, and NuScale Power Corp., whose shares have soared more than 150%..
Also, any nuclear stocks tied to the defense industry end up on Robecos exclusion list, he said.. There are several hula hoops to get through before an investment goes ahead, he said.. Berkouwer says he sees potential investment opportunities in uranium miners, equipment suppliers, companies building the so-called small modular reactors, and electric utilities where nuclear is an important part of the energy mix..
