Australian Ethical International Equities Trust March 2014 update

Australian Ethical International Equities Trust March 2014 update. In our Macro Economic Assessment section, we are coming to the view that China's 7.5% growth target is now a ceiling value versus the conventional view that the government target is an absolute minimum. In our Energy Policy Assessment section, we note China is getting serious about pollution as they have made it a KPI for local officials. This ties into our concerns with China as growth will take a back seat to the environment to an extent. In our Portfolio Assessment section we ask the question: when is free electricity a bad idea?. We discuss merit order pricing and the impact from renewable energy on wholesale electricity prices. Negative electricity prices are becoming a too common phenomenon in deregulated markets around the world portending to the growing conflict between the conventional grid and renewable energy (in particular rooftop solar). (VIEW LINK)