Addressing the Climate Change Threat
In 2020, Environmental, Social & Governance (ESG) related investments received record inflows as the COVID-19 crisis reminded policymakers and investors of the importance of long-term sustainable goals, on top of financial profits. With this paradigm shift, the sustainable investing trend is here to stay – in 2021 and beyond.
Within sustainable investing, the environmental space features companies providing new solutions to the growing needs for energy transition and sustainable resources. They are in a good position to benefit from the increasing support from policymakers and rapid technology advancements.
Investors may consider the Ninety One fund as a satellite allocation in a diversified portfolio to gain exposure to the space.
Ninety One Global Environment
What are the Key Characteristics of this fund?
- Actively managed, high conviction portfolio of 20-40 companies which aim to contribute positively to the environment through Decarbonization.
- Renewable Energy, Electrification & Resource Efficiency are the key investment themes.
- Geographically diversified to capture the best opportunities around the world.
Why this Fund? 3 Reasons:
- Comprehensive ESG process: In addition to the vigorous review of ESG factors during the bottom-up stock selection process, the team also actively engages with all portfolio companies to monitor and improve their environmental impact.
- Complementary Managers: Graeme Baker has is experienced in the conventional energy sector while Deirdre Cooper focused on sustainable investing in her previous roles.
- Strong performance with positive impact: Since inception in 2019, the fund has outperformed MSCI ACWI by over 130bps on an annualized basis with measurable carbon emissions avoided.