The Guinness Atkinson Alternative Energy Fund operates on the premise that the use of oil as a method for generating power is in the "autumn of its life." At the same time the world is at the dawn of the "Alternative Energy Age."
Typically the fund invests in 40 to 60 stocks of global companies that capture more than 50 percent of their revenue from alternative energy or alternative energy technology.
Power generation falling into the alternative energy category includes solar, wind, hydroelectric, tidal wave, geothermal, biomass or biofuels. Alternative energy technology includes technologies that enable alternative energy sources to be tapped. That would include energy storage and transportation such as fuel cells, batteries and flywheels; as well as technologies that enable more efficient use of energy.
Conversely, another member of the Guinness Atkinson Fund family, the Global Energy Fund, invests primarily in traditional energy sources including oil, natural gas, coal, nuclear and utilities, as well as some alternative energy.