FUND VIEW-Energy efficient cos suit planet and pocket -Jupiter

By Michael Taylor

LONDON, April 3 (Reuters) - Companies that aim to improve energy efficiency may not have the hype of renewables or biofuel firms but they offer better returns, the fund manager running Jupiter's 300 million pound Ecology fund (JEF) said.

"I don't care if it's not sexy," said Charlie Thomas, who cycles to work, owns a low-emission car and buys organic foods, and whose fund had its 20th anniversary on Tuesday.

"That's where the returns are," he said.

"The glamour in climate change is focusing on renewables -- big white turbines (are) very iconic. The less glamorous but much more meaningful impact if we're going to reduce our carbon footprint is going to be in energy efficiency, insulation, improving existing infrastructure that we've got." Clean energy firms include producers of standalone power and back-up systems, such as wind, solar, flywheels, batteries and fuel cells, biofuels, insulation materials and energy efficient technologies.

Thomas' preferred stocks are British insulation and roofing products firm SIG (SHI.L), U.S. building materials maker Owens Corning (OC.N) and French electrical engineering group Schneider Electric (SCHN.PA).

More environmental regulation from governments will also support energy efficient technologies, Thomas said, while the increase in landfill use and landfill taxes means greater value in recycling and waste management companies.

Waste management companies favoured are Britain's Shanks Group (SKS.L) and Casella Waste (CWST.O) and U.S. company Casella Waste (CWST.O).

Increased demand from emerging markets for raw materials will boost recycling and in turn, waste management companies even further, said the 34-year-old fund manager, who was previously an environmental adviser to oil major BP (BP.L).