Against a market backdrop shaped by continued disruption around the Strait of Hormuz and the growing influence of AI, Storebrand Global Solutions climbed 1.1% over the third quarter in EUR terms, roughly 1.2% behind the MSCI All Country World Index. Year-to-date, the fund has delivered strong absolute returns of 16.1% in EUR, lagging the benchmark by 0.7% over the same period [1].
Equal opportunities was the strongest thematic contributor over the quarter, driven by the fund’s cybersecurity holdings. US platform CrowdStrike and identity and access management specialist Okta were the top contributors, with Palo Alto Networks also among the leaders. AI has been widely viewed as a threat to software companies – CrowdStrike and Palo Alto were the largest drags on performance amid the software sell-off during the first quarter – but recent high-profile attacks have illustrated a need for more rather than less security at an individual, corporate and government level. We also see particular tailwinds in identity management, with a growing number of AI agents requiring identification, authorisation and monitoring in much the same way as human employees.
Renewable energy was the weakest theme over the third quarter as higher interest rates weighed on a capital-intensive sector. At a stock level, Chinese battery maker CATL, and US solar companies Nextpower and First Solar were among the largest detractors, reflecting weaker market sentiment that saw the S&P Global Clean Energy Transition Index fall by around 20% over the period.
Adding power, taking profits
The third quarter was a relatively busy period of portfolio activity. Three companies entered the fund during the quarter: Halma, the UK-based group of safety, health and environmental technology businesses; Infineon, the German semiconductor company and a leading supplier of the power chips used in electric vehicles, renewable energy and data centres; and HD Hyundai Electric, the South Korean manufacturer of transformers and other power grid equipment. All three companies are ‘picks and shovels’ enablers that provide the baseline infrastructure that makes everything else work – this means that they also tend to be more conservatively valued and insulated from political risks than higher profile names.
They replaced US packaging company Sonoco, Chinese solar module maker JinkoSolar and Comfort Systems USA. The contrasting fortunes of the latter two show the importance of selectivity within the solutions universe. JinkoSolar’s share price fell by around 80% over the past five years as overcapacity and falling prices weighed on solar manufacturing, while Comfort Systems, a mechanical and electrical contractor that has benefited from strong demand for data centre construction, rose by around 2,500% over the same period. We also reduced our cybersecurity exposure, taking profits in CrowdStrike, Palo Alto and Okta, with valuations generally becoming stretched on the back of strong equity performance.
These changes meant that Global Solutions entered the fourth quarter with the top ten holdings representing around a third of the portfolio, led by Visa, American Tower and CrowdStrike. The fund overall remains underweight the US, at around 47% of assets versus 63% for the index, and overweight Japan, China, Germany and India. On a sector basis, Industrials continues to represent its largest exposure at around 37% of the portfolio compared with 10% of the benchmark, although this remains diversified across companies providing energy, infrastructure and recycling solutions. The portfolio’s largest sector underweights are Information Technology and Financials.
Following the money
Looking ahead, the themes that shaped the third quarter – Iran and AI – are likely to continue driving markets through the end of the year, at least. The US mid-term elections and taxation also look set to be important themes in the fourth quarter, particularly in relation to how possible changes in the tax treatment of big tech companies may influence sentiment and equity performance.
The longer-term outlook for solutions companies remains supportive. According to the IEA’s World Energy Investment 2026 report, global energy investment is set to reach $3.4 trillion this year, with around $2.2 trillion going to clean energy – roughly two dollars for every dollar spent on fossil fuels. In the last decade, the largest increases have come in renewables, electrification and grids, while investment in oil has fallen. Events around the Strait of Hormuz have reignited the energy security case for domestically produced renewable power, while valuations falling back to levels seen at the start of the year have strengthened the investment case.
The pace of change still falls short of what is needed, however, and the rising costs of a warming world, from wildfires to flooding, are already being felt. Who pays for those costs while the transition continues is a question that will matter increasingly for companies, governments and investors. We continue to see attractive long-term opportunities in companies providing solutions to these challenges.
You can watch the Q3 2026 Global Solutions webinar here: Storebrand Global Solutions - Q3 2026 Update
[1] In EUR, gross of fees, as at 30/09/2026.