PZD

Let me start by giving you some context for the decision to invest in the InvescoPowerShares Cleantech Portfolio (PZD). It was our first month to invest in energy, and we were looking at a set of companies, which had a sort of slimy feel. BP, and ExxonMobil, were both on the table, as was world’s largest oil tanker company Frontline.

In addition to those oil companies, we were considering PZD an index fund of Cleantech companies. That is defined as “a company to be a cleantech company if it derives at least 50% of its revenues or operating profits from cleantech businesses. Cleantech businesses are defined as those that provide knowledge-based products (or services) that add economic value by reducing cost and raising productivity and/or product performance, while reducing the consumption of resources and the negative impact on the environment and public health.”

Some of our members who will remain nameless felt a little queasy about investing in evil crude oil refinery, or transport, on the other hand we were all excited by the giant dividends paid by Frontline. In the end we decided to split the investment.