The current offering of ‘sustainable’ strategies has a clear bias towards ‘Growth’, which has been a strong driver of performance over the past two years.
Recent Morningstar data reveals that 85% of SFDR Article 9 Global Equity funds have some degree of ‘Growth' bias. We believe this bias is partly driven by the immaturity of the space and the approach to defining ‘sustainable' investments. More recently, oil has continued to soar, inflation has proved to be far from transitory and interest rates have risen sharply. The materially overweight ‘Growth' sustainable and impact fund sector has come under significant performance pressure. According to the Morningstar data, sustainable strategies have underperformed the MSCI ACWI by an average...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
